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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (39040)	6/25/2009 11:04:47 AM
From: LoneClone	Read Replies (1) \| Respond to of 193527

Territory Resources mulls Monarch plan Rebecca Le May June 23, 2009 news.brisbanetimes.com.au Monarch Gold Mining Company Ltd's largest shareholder and major creditor, Territory Resources Ltd, says it remains undecided whether to back the collapsed gold miner's recapitalisation plan. The iron ore miner is owed about $25 million by Monarch, which was placed in voluntary administration in July after closing the loss-making, underperforming Davyhurst mine in Western Australia's Goldfields region. The recapitalisation plan aims to ensure that all Monarch creditors and debt providers receive 100 cents in the dollar. Based on creditor figures provided by the administrator Pitcher Partners of Perth, the total payout would amount to $55 million. A Territory Resources spokesman told AAP on Tuesday that the iron ore miner had not yet decided whether it would back the plan. "The company has received the deed administrator's report to creditors," he said. "The board is currently considering the proposals contained in the report and will act in the best interests of the company and Territory Resources shareholders." Under the recapitalisation plan, a company headed by former Monarch managing director Michael Kiernan will inject funds into Monarch to allow gold mining to recommence at the mothballed Davyhurst and Mt Ida projects. The company Sterling Resources Ltd, is now headed by Mr Kiernan. Sterling said in a statement on Tuesday that it planned to recommence mining as soon as possible at the two projects, ahead of a proposed name change to Swan Gold Mining Ltd and a relisting on the Australian stock exchange. Monarch creditor and copper miner India Resources Ltd on Monday said it would vote in favour of the recapitalisation proposal at a meeting of creditors on June 30. India is owed $3.5 million by Monarch. Monarch's association with Territory and India came about through Mr Kiernan, who was at one stage on the boards of all three companies.