THE WEST AUSTRALIAN
Monday, 17 December 2012 09:07
Administrators for failed miner Kagara have sold some of the company's North Queensland assets for $40 million.
Snow Peak Mining, which is associated with the listed Consolidated Tin Mines, will pick up Kagara Central Region assets including the resources and processing plant at Mt Garnet, the Balcooma and Baal Gammon mines and the Einasleigh and Maitland exploration projects.
"This transaction enables the administrators to continue to review the restructuring options available to the group," the company said in a statement.
"The proceeds from the sale will largely be used to extinguish the group's secured debt, trading costs, and administration expenses, with the balance to be retained for working capital.
"The administrators are currently considering offers on other assets of the group and are considering possible deed of company arrangement scenarios."
Michael Ryan, of administrator Taylor Woodings, said the transaction was another positive step that might facilitate the restructuring of the group, or assist in maximising the value which can be returned to creditors.
The transaction is set to settle next month and the administrators are expected to announce a second creditors' meeting before 28 February.
Kagara collapsed in May, hit by a downturn in commodity prices.
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