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Sherwin goes into voluntary administration

Sherwin goes into voluntary administration

Photo by Bloomberg

11th July 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Junior iron-ore company Sherwin Iron went into a trading halt on Friday as the company entered voluntary administration after failing to secure financing.

Sherwin had previously warned shareholders of the need to secure capital in order to fund its short-term and medium-term obligations, with the junior relying on A$10-million cash being held in escrow under its major debt facility, after a share purchase plan and rights issue failed to raise the necessary funding.

Sherwin said on Friday that it had been unable to secure the release of the cash within the timeframe required.

The company’s subsidiaries Sherwin Iron (NT) and South Murchison Mines have also been placed into voluntary administration.

Sherwin’s directors would now work with administrators and receivers to determine the future of the company.

Sherwin’s major asset is the Roper River project, in the Northern Territory, where it was granted a 40-year mining lease in June this year.

The Roper River project was expected to start at an initial export volume of up to three-million tons a year, which would be shipped across East Arm Wharf. The project has an indicated resource of some 39.5-million tons grading 57.9% iron.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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