Qld gold miner enters administration

Queensland gold miner BCD Resources has gone into voluntary administration according to ASX announcements this morning.

The future of the company will be assessed by PwC acting on behalf of MKS Precious Metals, during a brief moratorium period.

Earlier this year in January site works at the Lorena gold project were put on hold for a company review of development costs and funding requirements.

Following that review BCD had been in discussion with JV partner Malachite Resources to arrange a restructure of the agreement to assist with additional funding requirements.

Malachite was advised by BCD’s receiver and manager that the company had not met its obligations to develop Lorena, and that Malachite had the right to terminate their agreement, however malachite remains in discussions over the matter.

Administration proceedings are expected to take between two to three months.

The Lorena Project, located 15km east of Cloncurry in Queensland, is in the construction phase, currently estimated to be around 80 per cent complete.

The total resource is estimated at 203,000 tonnes at 8.7 g/t for 56,700 ounces of gold.

Gold processing plants for the mine were bought from the Beaconsfield Gold Mine in Tasmania and transported to Queensland in 2013.

BCD Resources (ASX:BCD) shares are currently $0.35, while Malachite Resources (ASX:MAR) has slid from $0.60 to $0.50.

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