PERTH (miningweekly.com) - Suitor Sibanye-Stillwater has offered a A$30-million lifeline to takeover target New Century Resources, after that company was forced to halt operations at its Queensland zinc mine in early March, following heavy rains.
Operations are expected to remain suspended for a further two to three weeks.
New Century has warned of production losses of 5 000 t to 20 000 t of zinc metal for the 2023 financial year, and has also warned that the production shortfall is likely to impact short-term liquidity.
The ASX-listed New Century said earlier this month that it was engaging with Sibanye-Stillwater on mitigating key operational and business risks, including short-term liquidity issues.
The board of JSE- and NYSE-listed Sibanye-Stillwater has now approved A$30-million in financial support, subject to certain conditions.
Sibanye-Stillwater said on Thursday that it remained committed to working with New Century to ensure the safety of the on-site team and the safe restart of operations. The company also remained committed to working with New Century to ensure that it remained in a position to meet its financial obligations while it recovered from this unforeseen event, subject to certain conditions.
Sibanye-Stillwater has made a A$1.10-a-share takeover offer for New Century, and currently holds an 87.64% interest in the company.