Norseman Gold axes jobs

Norseman Gold has shut its only remaining mine and cut 31 jobs as administrators seek to recapitalise its operations.

The mine's administrators, Dean-Willcocks Shepard, announced that Norseman had halted operations at its North Royal pit, cutting 31 jobs, according to The West Australian.

However the mine is still processing ore at the site, as well as tailings from other operations; employing around 105 workers on site.

It originally entered into voluntary administration at the start of the month.

"The business has now reached a critical point in respect of short term cash flow and as a result the directors of Norseman Gold, which is the largest creditor of CNGC, have concluded that it is appropriate to appoint a voluntary administrator," it said in a statement.

It went on to state that "the company’s operations have not produced cash flow sufficient enough to meet liabilities to creditors on a timely basis."

Prior to this it had already put its Bullen and OK Decline mines on care and maintenance, and shut its Harlequin underground mine on the advice of the WA Department of Mines and Petroleum, which recommended it close due to safety concerns.

"The administrator continues to work with management to continue the operations of the company and it is currently proposed that a deed of company arrangement will be put to creditors by mid-December facilitating the ongoing trading of the company," administrator spokesperson Ron Dean-Willcocks said.

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