PERTH (miningweekly.com) – The administrators of ASX-listed Kagara are looking for new buyers for the group’s Northern Chillagoe project, after the sale fell through.
In June this year, the administrators announced they had agreed to a sale of the Northern Chillagoe project, as well as the Thalanga and Liontown/Waterloo projects to Lucky Metals, in two separate transactions.
The Northern Chillagoe project was sold for a total cash consideration of A$50-million, along with a cash or share component of either A$8.19-million or the equivalent in shares. A A$4.9-million deposit was expected by July 3.
However, Lucky Metals failed to meet this milestone, and the administrators said on Monday that discussions with the company failed to deliver any resolution.
The administrators would now restart the marketing and sales process of the Northern Chillagoe assets, and would select a preferred bidder for these assets as soon as possible.
Kagara was also currently considering its position relating to the Thalanga and Liontown/Waterloo assets, which were sold for A$11-million in cash and a cash or share component of A$1.8-million.
The company said that it would update the market once a decision around these projects had been made.Author: Esmarie Swanepoel Source: MiningWeekly.com