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Mining Weekly reported that Shaw River Manganese Ltd. (ASX:SRR) has entered voluntary administration. The company is the third Australian manganese company to shut its doors in the last two months.
Mining Weekly reported that Shaw River Manganese Ltd. (ASX:SRR) has entered voluntary administration. The company is the third Australian manganese company to shut its doors in the last two months.
As quoted in the market news:
The ASX-listed company told shareholders on Monday that while it had a credit line with a major shareholder that had not yet been exhausted, beyond an initial loan amount, all additional drawdowns were at the discretion of the lender.
While the lender continued to advance loan funds through much of 2015, its capacity to advance further funds had been limited.
Meanwhile, shareholders failed to respond to Shaw River’s November/December plight to participate in a share purchase plan, which had been aimed to assist with working capital and, if sufficient, to reduce debt obligations.
Furthermore, Shaw River had been unable to secure any assurances from third-parties relating to possible fund raisings in the short term, despite entering into discussions with various parties and pursuing a debt restructuring as a precondition for a potential fund raising.
