Apr 02, 2020

FNQ miner hit with $4m demand over stalled deal

FNQ miner hit with $4m demand over stalled deal

Chillagoe mining operation owners are seeking more than $4 million from Consolidated Tin Mines after a failed acquisition deal.

The proposed $53 million acquisition deal would have seen Consolidated Tin adding the Mungana processing plant, Mungana mine and King Vol polymetallic mine to its regional assets.

It has now received a notice of demand from Auctus Minerals for payment of a break fee and interest on the deposit under the share sale agreement entered regarding the deal. The amount sought is $4.325 million.

Consolidated Tin managing director Ralph De Lacey said the company disputed that the amount claimed was payable on the basis of the prior termination of the share sale agreement.

The Chillagoe mining projects at the centre of the talks are now in care and maintenance, with Richard Tucker and John Bumback of KordaMentha Perth recently appointed as voluntary administrators for Auctus Minerals.

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