02/12/2014 - 13:22

New hope in Pluton saga

02/12/2014 - 13:22

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Iron ore miner Pluton Resources has settled proceedings against junior secured creditor Rizhao Port Group Logistics, which includes the removal of receivers appointed by Rizhao in disputed circumstances last month.

New hope in Pluton saga
Pluton's Cockatoo Island project.

Iron ore miner Pluton Resources has settled proceedings against junior secured creditor Rizhao Port Group Logistics, which includes the removal of receivers appointed by Rizhao in disputed circumstances last month.

The agreement leaves Pluton in the hands of receivers from KordaMentha, who were appointed by Pluton's major shareholder General Nice Resources.

As part of the settlement, Pluton and Rizhao reached an agreement towards a revised debt repayment scheme, which has been guaranteed by GNR.

Rizhao has also ended an offtake agreement for iron ore mined at Pluton's Cockatoo Island project.

Meanwhile, GNR has been in negotiations with Watpac Civil & Mining to provide shipment loading work at the Cockatoo Island mine.

Watpac undertook care and maintenance services at Cockatoo Island for a short period after Pluton last month fell into the hands of receivers KordaMentha.

Pluton is also still seeking payment from Singapore-based Silver Fir for a shipment of about 40,000 tonnes of high-grade ore, which was delivered in October.

“The company has been advised that the iron ore shipment has been delivered to a third party,” Pluton said in a statement.

“The company is continuing to pursue Silver Fir to recover the unpaid purchase price and consequential damages.”

In late October, Pluton's joint venture partner Wise Energy Group said it wanted Pluton removed from its positition as manager of the Cockatoo Island project.

It sparked a receivership battle between GNR and Rizhao, who fought over who had the right to appoint receivers to the collapsed miner.

Rizhao made an attempt to appoint representatives of FTI Consulting, however, Pluton argued that the actions weren't permitted without consent from GNR.

GNR then advised the company that it would appoint KordaMentha as the company's recievers.

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