PERTH (miningweekly.com) – Struggling silver miner Alcyone Resources has been forced to appoint administrators, after failing to raise cash.
In December last year, Alcyone signed a A$25-million financing deal with global hedge fund Platinum Partners, and it has also agreed to a A$5-million buy-out of the Red Arrow mine, in the US.
Both the credit facility and Red Arrow acquisitions were terminated in March, after Alcyone failed to reach an agreement with Platinum Partners regarding the transfer of security, with Alcyone instead announcing a proposed rights issue in the hopes of raising some A$13.8-million, through a two-for-one rights issue priced at 1c a share.
To date, Alcyone has been unable to raise the necessary funding.
The lack of funding prompted the silver miner to suspend operations at its Twin Hills mine site, in Queensland, during June this year, after the leaching operations were declared uneconomical without a fresh ore supply.
Alcyone’s share trading has also been in suspension since July this year.