News

Wiluna Mining calls in administrators

Wiluna Mining Corporation has gone into insolvency, appointing FTI Consulting as voluntary administrators.

On the back of a $60 million capital raise, the company had recently appointed new management, which had been seeking to reset the mine plan in order to take advantage of the 5.5 million ounce gold resource reported at the Wiluna operations.

The administrators have been advised by management that due to the impact of increasing cost pressures, tightening terms of creditor payments, the impact of COVID on staff availability, project ramp-up issues and worldwide shipping constraints, there has been insufficient working capital to bridge the project to complete the development of the reset mine plan.

Although Wiluna Mining has investigated options to address that cash flow shortfall, through obtaining financial accommodation from creditors and shareholders, the directors said it had become apparent that those options will not successfully address the cash flow shortfall in the time available.

While in administration, the company’s shares will be suspended from trading. Updates on the administration process will be uploaded on the ASX platform.

The administrators at this stage intend to continue operating Wiluna Mining on a ‘business as usual’ basis while reviewing operating and recapitalisation options.

They will work closely with Wiluna Mining employees, suppliers, secured lenders and customers to quickly stabilise operations and preserve value for stakeholders.

A first statutory meeting of creditors must be held within eight business days after commencement of the administration and is expected to take place on August 1. Meeting notices setting out the time and location for the first meeting of creditors will be distributed to Wiluna Mining’s creditors over coming days.

 

 

Editor of industrial titles and mastheads with Prime Creative Media. Publications include Rail Express and Australian Mining (web content).
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