https://www.miningweekly.com

Malaga may sell Peruvian tungsten assets as financial woes deepen

21st May 2013

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

Font size: - +

TORONTO (miningweekly.com) – Tungsten junior Malaga, which owns the Pasto Bueno mine, in Peru, on Tuesday said it could sell its Peruvian assets in an attempt to remain a going concern.

Malaga put the Pasta Bueno mine and plant on care and maintenance in the fourth quarter, which had cast significant doubt about its ability to continue as a going concern.

The company said it was not in a position to meet its financial obligations. At March 31, its working capital deficit was $8.3-million.

The mine remained on care and maintenance and Malaga had put in place more measures to reduce costs as it was examining all possible alternatives, which could result in a sale of a portion or all of its assets.

During the first quarter ended March 31, the company was able to sell copper by-product and realised sales of $1.2-million. It had also cancelled its office lease in Canada, reducing its operating lease commitments for a cash settlement fee of $45 000.

The carrying value of the mine and mill was also impaired during the quarter, resulting in Malaga booking a $2.6-million charge.

In its search for cash, Malaga had also early in April entered into an agreement to sell all of its shares in Hidroelectrica Pelagatos (Hidropesac) for $650 000.

Malaga said it had received a $325 000 deposit and the balance would be received on closing, which was expected to take place within weeks.

Hidropesac owned and operated the 600 kW hydroelectric power plant at the Pasto Bueno property.

Edited by Creamer Media Reporter

Comments

Showroom

Flameblock
Flameblock

FlameBlock is a proudly South African company that engineers, manufactures and supplies fire intumescent and retardant products to the fire...

VISIT SHOWROOM 
Hanna Instruments Image
Hanna Instruments (Pty) Ltd

We supply customers with practical affordable solutions for their testing needs. Our products include benchtop, portable, in-line process control...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 19 April 2024
Magazine round up | 19 April 2024
19th April 2024
Resources Watch
Resources Watch
17th April 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.16 0.199s - 106pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: