news, local news, Tasmania, mining, Avebury, Nickel, John Lamb, Mallee Resources, sale
A long mothballed west coast mine may finally have to restart, creating jobs and an economic boost for Zeehan and the wider region. A sale agreement involving the Avebury nickel mine is underway. Mallee Resources Limited – an ASX-listed company seeking to buy Avebury – is run by a Tasmanian and international businessman intimately familiar with the mine. Executive Chairman and Managing Director John Lamb was the Managing Director of MMG Limited for the Rosebery Mine and Avebury at the time when Hong Kong-listed MMG owned Avebury. Avebury – developed by Allegiance Mining – was placed on care and maintenance status in 2008 due to low nickel prices. He has not produced since. MMG brought it to market, eventually selling it for $25 million to private Tasmanian-Chinese company Dundas Mining in 2016. Dundas never brought Avebury into production and went into receivership at the end last year with some related entities amid allegations of creditors not being paid. Perth-headquartered Mallee recently submitted a deed of partnership arrangement to the directors of Allegiance Mining and related entities. The Allegiance Group owns Avebury. Mallee told the ASX he made the proposal with the Allegiance Group’s only secured creditor, Hartree Metals. The proposal involved Mallee or a proxy guaranteeing all of Allegiance’s issued capital through a combination of cash and stock. Allegiance’s assets include the underground mine, mining and exploration permits, plant and equipment. Mallee’s involvement would require shareholder approval, as well as regulatory approvals. In addition, Allegiance’s creditors should vote in favor of the proposal and the company’s deed of arrangement should be executed. A vote of creditors was due to take place on Tuesday. Mallee told the ASX that Hartree would implement the company’s deed of arrangement without him if Mallee shareholders did not support the deal and any other necessary regulatory approvals were not obtained by June 30, or maybe later. Receiver BDO Australia said in November it intended to keep around 60 Dundas employees employed. Creditors, excluding Hartree, are expected to receive approximately $1.4 million. IN OTHER NEWS Not all details of the deal have been finalized. “It’s a step in a very positive direction if this materializes,” said Ray Mostogl, chief executive of the Tasmanian Minerals, Manufacturing and Energy Council. “It would be a great outcome for Tasmania and for mining.” Why not subscribe to The Advocate for more daily local news? register here
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A long mothballed west coast mine may finally have to restart, creating jobs and an economic boost for Zeehan and the wider region.
Mallee Resources Limited – an ASX-listed company seeking to buy Avebury – is run by a Tasmanian and international businessman intimately familiar with the mine.
Executive Chairman and Managing Director John Lamb was the Managing Director of MMG Limited for the Rosebery Mine and Avebury at the time when Hong Kong-listed MMG owned Avebury.
Avebury – developed by Allegiance Mining – was placed on care and maintenance status in 2008 due to low nickel prices.
He has not produced since.
MMG brought it to market and eventually sold it for $25 million to Tasmanian-Chinese private company Dundas Mining in 2016.
Dundas never brought Avebury into production and went into receivership late last year along with certain related entities amid allegations of unpaid creditors.
Perth-headquartered Mallee recently submitted a deed of partnership arrangement to the directors of Allegiance Mining and related entities.
The Allegiance Group owns Avebury.
Mallee told the ASX he made the proposal with the Allegiance Group’s only secured creditor, Hartree Metals.
The proposal involved Mallee or a proxy guaranteeing all of Allegiance’s issued capital through a combination of cash and stock.
Allegiance’s assets include the underground mine, mining and exploration permits, plant and equipment.
Mallee’s involvement would require shareholder approval, as well as regulatory approvals.
In addition, Allegiance’s creditors should vote in favor of the proposal and the company’s deed of arrangement should be executed.
A vote of creditors was due to take place on Tuesday.
Mallee told the ASX that Hartree would implement the company’s deed of arrangement without him if Mallee shareholders did not support the deal and any other necessary regulatory approvals were not obtained by June 30, or maybe later.
Receiver BDO Australia said in November he intended to keep around 60 Dundas employees employed
Creditors, excluding Hartree, are expected to receive approximately $1.4 million.
Full details of the deal have not been finalized.
“It’s a step in a very positive direction if this materializes,” said Ray Mostogl, chief executive of the Tasmanian Minerals, Manufacturing and Energy Council.
“It would be a great outcome for Tasmania and for mining.”
Why not subscribe to The Advocate for more daily local news?register here
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