Greater Bendigo Gold Mines has been forced to put its operating company into voluntary administration, managing director John Cahill told MINING DAILY.
“We had a $10 million funding facility which, with the downturn in the market, has since become unavailable to us,” Cahill said.
The company has been forced to lay off 16 employees from its Maxwell mine operation while the mine remains on basic care and maintenance.
According to Cahill, the company’s directors are currently working on a number of strategies that will help resume operations in the future.
In other news, Cambrian Mining has also felt the pinch of the current economic crisis.
The company is currently undertaking a re-organisation of its gold & antimony operation at Costerfield, Australia.
According to a market announcement made by the company to the London stock exchange, the re-organisation will allow for immediate cost savings, deferred capital expenditure and a temporarily reduced production profile.
““Running our operations at a sustainable level and maximising cash generation is a priority for Cambrian,” the company’s CEO Mark Burridge said in a statement released to the LSX.
“Making these decisions is never easy and we appreciate the efforts and commitment of our operating teams in making these changes. By responding effectively to the current downturn we will be in a position to react positively when conditions improve.”
The company declined MINING DAILY’s request for comment.