https://www.miningweekly.com

Administrators appointed for Reeds’ Meekatharra

19th August 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

Font size: - +

PERTH (miningweekly.com) – Trading in the shares of ASX-listed Reed Resources was suspended on Monday as the company appointed administrators to its Meekatharra gold project, in Western Australia.

Last month, Reed announced that it would defer Stage 2 and 3 development of the Meekatharra operation, citing the current price environment and the challenging equity markets as its reasons.

Lower head-grade  and mine-to-mill ounce reconciliation also adversely affected production at Meekatharra.

Despite the company’s best efforts to mitigate the short-term cash-flow impact of these issues, and to improve mine-to-mill ounces, the project has continued to underperform, placing strain on Reed subsidiary GMK Exploration.

Reed noted that GMK Exploration was unable to continue to operate the Meekatharra gold project on a sustainable basis without further significant funding, which the group has been unable to secure. As a result, administrators have now been appointed to GMK Exploration.

Reed also announced a full review of its operational strategy in respect of its other projects.

Earlier this month, Reed said it would continue with the divestment of its noncore assets, after unsuccessfully trying to sell its Comet Vale project to fellow-listed Crest Minerals.

The company’s shares would likely remain suspended until August 23.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Rio-Carb
Rio-Carb

Rio Carb is an OEM (Original Equipment Manufacturer) of R-C700 Chromium Carbide (CrC) alloy clad wear plates and pipes used for heavy materials...

VISIT SHOWROOM 
WearCheck
WearCheck

Leading condition monitoring specialists, WearCheck, help boost machinery lifespan and reduce catastrophic component failure through the scientific...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

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:0.049 0.853s - 128pq - 2rq
Subscribe Now