1st Jun 2018 10:27
LONDON (Alliance News) - Weatherly International PLC's shares were suspended on Friday as the company said it is considering 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 said 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 has 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".
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.