Mercator Gold plc
Mercator Gold PLC is a dynamic UK gold mining company, listed on the AIM market of the London Stock Exchange (MCR.L), which has revived a large former gold producing area at Meekatharra, Western Australia, and brought it back to production.
Following an aggressive exploration programme and a major upgrade of existing mine infrastructure Mercator produced its first gold in October 2007 and expects to produce approximately 120,000 ounces of gold in the first 12 months of operations from a combined ore reserve of about 196,000 ounces at two open pits. At its underground mines at Meekatharra Mercator has a further probable ore reserve of 308,000 ounces.
Monday, October 13, 2008
Mercator Gold enters administration while it seeks refinancing
Shares in Mercator Gold (AIM: MCR) remained suspended after the company announced that it had voluntarily called in administrators while it attempts to refinance its gold exploration and mining operations in Meekatharra, Western Australia. Mercator announced recently that it had entered discussions with Tulla Resources Group about a refinancing of the operation.
Today Mercator confirmed that the administrators planned to enter the company into a “Deed of Arrangement” under which it would have a six month moratorium from all creditors. The administrators also plan to suspend all mining and milling activities at the mine site, including suspension of mining at the Surprise Pit. As a result, the group’s hedging program was closed out by its bank.
“Essential maintenance to the Bluebird mill will be carried out, and work will continue on the deviation of the Great Northern Highway to allow continued mining of the Surprise pit in the future. A re-estimation of the remaining reserves in the Bluebird pit will also take place,” the company added.
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