PERTH (miningweekly.com) – ASX-listed Sumatra Copper & Gold on Thursday told shareholders that it would voluntarily appoint administrators after failing to raise funding to restructure its debt.
Sumatra subsidiary PT Dwinad Nusa Sejahtera (DNS), which operated the Tembang project in Indonesia, has been in discussions with its secured lenders and stakeholders to restructure its debt, but has failed to reach an agreement.
The lenders have also rejected a proposal to restructure Sumatra in order to release guarantees provided to DNS lenders as part of a broader restructure of the company.
Sumatra said that as these negotiations with the DNS lenders had failed, and potential new funders had specified that the restructure of the company was a condition to providing capital, the company had no alternative but to appoint administrators.
Sumatra added that it would continue with its efforts to resurrect the failing miner, and to restore an ASX listing.
Sumatra in June last year suspended mining operations at Tembang as mining of the lower-grade Asmar orebody became too expensive given the cost structures and the prevailing gold price.
The company’s shares were suspended from trading on the ASX in July last year.