Following the rejection of a restructuring and funding plan by shareholders last month, Beacon Hill Resources has been placed into administration. The company, which owns the Minas Moatize mine in Mozambique, had previously warned that it only had enough operating cash to survive until mid-January.
Minas Moatize Limitada, the operator of the Minas Moatize mine, has not at this stage been placed into administration. The board of directors and senior management will now work with the administrators and Vitol Coal, the company’s senior secured debt provider, to maintain the mine as a going concern with a view to its sale.
The company’s shares will remain suspended from trading on AIM until further notice. The company also warned that ordinary shareholders face the complete loss of their investment due to its “significant liabilities and prevailing adverse global coal market conditions”.
"Since 17 December 2014, the board has endeavoured to identify and progress potential alternative funding and restructuring solutions with its senior debt provider and other key stakeholders to take the business forward,” said Justin Farr-Jones, Chairman of Beacon Hill, in a statement. “However, it has unfortunately not proved feasible to secure any viable alternative sources of funding in the time available.”
"Minas Moatize remains an excellent project with significant milestones achieved since the company assumed management control of the mine in May 2010,” Farr-Jones continued. “We sincerely hope that a suitable acquirer will be found to enable this attractive asset to recommence economic mining operations over the longer term."
Written by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/mining/13012015/beacon-hill-placed-into-administration-coal1742/