Beacon Hill's coal mine in Mozambique
JOHANNESBURG (miningweekly.com) – Confirmation was awaited late Wednesday afternoon on reported financial problems being faced by the London Aim-listed Beacon Hill Resources, the developer of the Minas Moatize coking coal mine in Mozambique, following the company’s failure to win the requisite shareholder support at last month’s general meeting.
Mining Weekly Online had, at the time of going to press, not received replies to both emailed and telephonic enquiries, which sought confirmation of reports that the company would be making an important announcement on its future in the course of this month.
In a notice to the London Stock Exchange in December following suspension from trading, Beacon Hill said that its board was extremely disappointed that resolutions had not been supported, despite receiving a thumbs up from independent directors.
The funding and restructuring proposals were the culmination of work over a lengthy time period in difficult market conditions.
Beacon Hill chairperson Justin Farr-Jones expressed disappointment that voting at 69% had fallen short of the requisite 75% threshold to enable the company to implement its remedial proposals.
As a consequence, payment of $4.1-million under its existing $10-million senior debt facility remained due for repayment by the end of January.
Earlier this year, Mining Weekly Online reported that Beacon Hill had entered into a sublease of its rolling stock and also quoted CEO Rowan Karstel on the company making steady progress with its new debt facility for the expansion of Minas Moatize.
At the time, Karstel – who formerly worked for BHP Billiton, Xstrata and Optimum Coal – was optimistic that Beacon Hill would be able to deliver some resolution for its shareholders before year-end.