Mount Garnet miner Consolidated Tin Mines has entered voluntary administration.
Consolidated Tin chairman Ralph De Lacey said the delay in the receipt of working capital funding announced in February had caused much concern and stress to the company.
“The directors see voluntary administration as the only option now to allow time to secure working capital necessary to meet current company commitments and progress future plans,” he said.
Hall Chadwick partners Blair Pleash and Kathleen Vouris have been appointed voluntary administrators of Consolidated Tin Mines and Snow Peak Mining.
The administrators are assessing the operations of the companies, with an initial meeting of the companies’ creditors to be held within a week.
Snow Peak Mining, then a major shareholder of Consolidated Tin, acquired a raft of former Kagara assets in the Mount Garnet area in North Queensland for $40 million in 2013.
Consolidated Tin in April this year announced that it completed the acquisition of assets including the Mount Garnet base metal operation from Snow Peak Mining.
The company said this settlement paved the way for it to receive $US20 million from a Chinese bank to be used for working capital and continued project development.
During the March quarter 118, 790 tonnes of ore was produced from the Mount Garnet mine and Consolidated Tin’s adjacent concentrator was operating 24/7 with a throughput of about 1149.7 ore tonnes per day.
Consolidated Tin has also been advancing its Mount Garnet Tin Project, completing a definitive feasibility study on the Gillian deposit.