Troubled junior miner enters voluntary administration

Moreton Resources has flatlined after years of financial and legal controversy forced the coal and silver junior miner into voluntary administration.

Moreton recorded a $26.5 million net loss in the last financial year and has struggled to make a profit.

The company has also faced a see-sawing board of directors besieged with resignations.

The board of Moreton Resources now enlisted Deloitte Financial Advisory’s Grant Sparks and David Orr as administrators.

With the company under administration, Deloitte will assess Moreton’s business and financial position to determine the future of the business and its assets.

Moreton, which was previously known as Cougar Energy, has faced a string of curveballs to its operations.

Cougar (now Moreton) was fined $75,000 in 2013 for a benzene leak at its Kingaroy underground coal gasification project in Queensland.

Its acquisition of the Granite Belt silver mine near Texas, Queensland, in 2017 was also expected to ramp up revenue for Moreton, however fears for contamination at the site were much worse than anticipated, with Moreton reporting three times the amount of pond sludge compared with what was estimated.

Moreton also scrapped its initial mining lease application for a coal mine at Kingaroy, Queensland in February, but lodged plans to the federal government to develop a new thermal coal mine south of Kingaroy in May.

Deloitte stated it would advise Moreton of its best course of action in due course.

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