Australian gold producer Wiluna Mining enters administration

Wiluna Mining grapples with cost, creditor and supply chain issues and is suspended from the Australian Securities Exchange

Australian gold producer Wiluna Mining has entered administration after grappling with cost, creditor and supply chain issues.

A Wiluna statement reads: "The securities of Wiluna Mining Corporation Limited (‘WMC’) will be suspended from quotation immediately under Listing Rule 17.3, following the appointment of voluntary administrators."

A statement from FTI Consulting announces that the Directors of WMC and its subsidiaries resolved yesterday (July 20) to appoint Michael Ryan, Kathryn Warwick, Daniel Woodhouse and Ian Francis as Voluntary Administrators.

The company had recently installed new management - with Rowan Johnston appointed Interim Non-Executive Chairman and Michael Monaghan acting CEO - which had been seeking to reset the mine plan in order to take advantage of the 5.5mn ounce gold resource reported at the Wiluna operations. Monaghan was on a $2,000-per-day consulting fee.

"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 19 on staff availability, project ramp up issues and worldwide shipping constraints, there is insufficient working capital to bridge the project to complete the development of the reset mine plan," the statement reads.

The Perth based, ASX listed gold mining company controlled over 1,600sqkm of the Yilgarn Craton in the Northern Goldfields of WA.

The Yilgarn Craton has a historic and current gold endowment of over 380mn ounces, making it "one of most prolific gold regions in the world," according to Wiluna.

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

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

The first statutory meeting of creditors is expected to take place on August 1.

Share

Featured Articles

Rio Tinto, not Anglo American, 'is BHP's Real Target'

As Anglo American restructures in face of takeover bid, experts believe BHP's real target is Rio Tinto, the world's second largest metals & minerals miner

Anglo American Rejects Latest BHP Bid for Copper Supremacy

As Anglo American rebuffs BHP Group's $42bn takeover bid we profile the huge Anglo-owned copper mines that BHP has in its sights

Investing in America Boost for US Critical Minerals Mining

Critical minerals mining and extraction activities in the US now fall under President Biden’s Investing in America agenda and are eligible for funding

Australia Looks to Loosen China's Grip on Critical Minerals

Supply Chain & Operations

EY: Silver Miners' Sustainability & Supply Challenge

Smart Mining

Caterpillar: Profile of a Mining Equipment Colossus

Machinery