Alita goes into administration
PERTH (miningweekly.com) – Lithium miner Alita Resources has gone into voluntary administration just days after shareholder Galaxy Resources paid $31.1-million to acquire the company’s senior secured debt facility.
Alita earlier this month received a notice of default from a consortium of lenders under its secured A$40-million loan facility, with the lenders refusing to accept the updated life-of-mine (LoM) plan for Alita’s Bald Hill operation, in Western Australia, and alleging failure to comply with the physical parameters of the previously approved LoM plan.
The lenders also pointed out that Alita was suffering a material adverse effect to its business and financial performance on the back of the declining lithium spot price and the weakened market demand for spodumene concentrate.
The Alita administrators on Thursday said that they were undertaking an urgent assessment of the company’s financial position and viability with a view to restructure or recapitalize.
The administrators will be meeting with stakeholders shortly to discuss measures to reduce the company’s overheads, and will also start discussions with the secured creditors regarding the potential restructure or recapitalization proposal.
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