Receiver Ferrier Hodgson says it has started an urgent assessment into miner CopperCo, which stunned the market last week after appointing administrators.
In a statement posted on the Australian Securities Exchange platform, Ferrier Hodgson said it had taken control of the operations and started a review into the company's financial position.
CopperCo, which recently completed its merger with Mineral Securities, appointed McGrathNicol as voluntary administrators last week after a financial deal that would have propped up the company failed to go through.
Its been reported that the company, which had its copper sales hedged for another two years at a premium to current prices, could not raise $50 million to service a debt.
CopperCo operates the Lady Annie mine in Queensland. Its shares last traded at five cents.
The Ferrier Hodgson announcement is pasted below:
I advise that Andrew Saker, Peter Geroff and I were appointed Joint and Several Receivers and Managers over the assets and undertakings of the Group on 26 November 2008 pursuant to various securities executed in favour of Macquarie Bank Limited. Separately Shaun Fraser, Simon Read, and James Thackray of the firm McGrathNicol were appointed as Joint and Several Administrators of the Group on the same day. Trading in CopperCo Limited's securities was suspended on 20 November 2008.
As Receivers and Managers we have taken control of the operations of the Group, and have commenced an urgent assessment of the financial position of the Group. Further information will be communicated in due course as the position for shareholders is determined.
Ongoing Reporting of Key Developments
Information on key developments during the Receivership period will be available from our website at www.ferrierhodgson.com.
