1st Jun 2018 16:30
LONDON (Alliance News) - Weatherly International PLC said late Friday it has appointed Simon Kirkhope and Andrew Johnson of FTI Consulting LLP as administrators to the company due to material uncertainty regarding the company's operational and financial position.
The company also said it has agreed with UK Takeover panel to terminate its formal sale process announced in late April.
Weatherly put itself up for sale as it sought funding to buy the Kitumba project in Zambia, with the deal lapsing after it was unable to agree a backstop date extension.
Earlier on Friday, the company's shares were suspended as it considered going into administration.
In mid-May, the firm said flooding had occurred at its Tschudi open pit mine in Namibia. Despite moving equipment in, which stabilised water levels, Weatherly had said earlier Friday it does not know when mining can re-start nor what the financial hit will be.
As a result, Orion Mine Finance (Master) Fund I LP had said it is "unlikely" to allow any drawdowns of its loan facility with Weatherly, and as a result it is "seeking advice in relation to administration".