Millennium Minerals has entered into voluntary administration following months of fund raising efforts to support the Nullagine gold mine in Western Australia.
The gold miner has appointed Deloitte Financial Advisory as its administrators.
Deloitte is undertaking “an urgent assessment” of Millennium’s trading position and near-term liquidity. This will determine Millennium’s future viability and options going forward.
Millennium last month received a $7.5 million extension to its $20 million term loan facility with major shareholder IMC Group.
The company used the funding to underpin the Nullagine project’s optimisation, improvement and exploration initiatives.
Millennium had required extra liquidity as it was ramping up production at the Golden Gate Mining Centre.
In September, Millennium lowered its 2019 production guidance from 80,000–90,000 ounces to 70,000–75,000 ounces, stating it couldn’t make up for the production shortfalls incurred in previous quarters.
The company has been experiencing delays in receiving Nullagine open pit mining approvals, ramping up the Bartons underground and commissioning the sulphide plant.
Millennium managing director Warren Hallam announced in September the company’s focus was to reduce costs and introduce operating efficiencies.
This led to Millennium transitioning to an owner-operator business model for open pit mining load and haul operations in October.
Deloitte expects to provide updates concerning Millennium’s future as soon as possible.