Thu, 27 Jun 2013 | ADMINISTRATION
Western United Mines (WUM) has placed South Crofty Mine into administration as a precaution while it looks for alternative investment.
Canadian firm Celeste Mining Corporations had entered into a deal two years ago to fund expenditures through an earn-in agreement but the company was served with a default notice on 5 June when Celeste failed to keep its contractual obligations.
WUM has received no further payments since this notice was served and in order to safeguard South Crofty's assets the parent company took the decision to appoint administrators, opting for David Tann, John Kirkpatrick and Keith Stevens of Wilkins Kennedy LLP.
Alan Shoesmith, chief executive at WUM, commented: “Celeste’s failure to meet its financial responsibilities has been a major blow for us in terms of being able to continue with the exploration and development work that has been yielding such hugely positive results.”
He added that the purchase of the mine has already come with “endless challenges” due to problems with the UNESCO objections to mining operations within Cornwall's World Heritage Site.
However, it looks like a restructuring will be possible following the administration and the WUM are hopeful that the future will be positive: “Our aim is to reform and obtain new finance to replace what we have lost from Celeste and, judging by the interest being shown, we are very hopeful that we can ultimately finish the job started 12 years ago and get the mine back into production.”
____________________________________________________________________________
Related news:
How to profit from buying a distressed business
Buying insolvent businesses
This high-class restaurant in South Yorkshire is a rare opportunity, featuring a prime city-centre location and a vibrant, elegantly designed interior.
LEASEHOLD
This well-established stoves and cookers business in East Sussex offers a tastefully organised setting with spacious showrooms, a large office, and nearby warehousing featuring excellent facilities like a forklift.
LEASEHOLD
This well-established mechanical, plumbing, and electrical contracting and maintenance business boasts an exceptional reputation, having operated for around 50 years with a focus on the education and health sectors.
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.