Pluton gets new funding

Troubled miner Pluton Resources says its major shareholder General Nice Resources has committed to provide extra funding to recommence operations at the Cockatoo Island iron ore project.

GNR mining vice president Rahul Goel said the company would continue to support the Cockatoo Island project for the benefit of the company and its shareholders.

The Cockatoo Island project is a joint venture between Pluton and Wise Energy Group.

Pluton also said today that KordaMentha, the company’s receivers, were in talks with Watpac Civil & Mining to recommence work at Cockatoo Island as soon as possible.

Watpac briefly resumed limited works at the project last week after reaching an agreement with KordaMentha.

In a statement to the ASX yesterday, Pluton said Watpac had finished loading a shipment under an agreement with the receivers.

“Upon delivery, the proceeds of sale from this shipment will be retained by (KordaMentha),” Pluton said.

Watpac then notified KordaMentha that it had re-suspended services on Cockatoo Island, pending further negotiation.

Meanwhile, Wise argued yesterday that the appointment of KordaMentha as the company’s receivers by GNR was breaching the rules, and an application to invalidate the appointment was heard at the Supreme Court today.

However, the matter was unresolved in court today and will be re-considered in early December.

“(KordaMentha) remains in control of the company, pending the outcome of this hearing,” Pluton said in a statement.