CuDeco confirmed they will not resume operations at their Rocklands project in January as anticipated, due to funding issues.
A spokesperson for the problematic copper producer said currently operations remain suspended.
“We are working to resume operations as quickly as possible following the finalisation of a suitable long-term funding arrangement.
“It is anticipated operations will resume in early 2019,” the spokesperson said.
Less than a month ago a CuDeco spokesperson confirmed they anticipated operations to resume at the Rockland’s, Cloncurry mine in January 2019.
Cloncurry Mayor Greg Campbell said he was frustrated and disappointed to see the least.
“CuDeco have been a good employer of staff locally but from what I see and hear loyal staff have been treated very poorly,” Cr Campbell said.
“Further extension of non-production adds to the sense that the company is not running well. I strongly support mining in the area but mining companies including CuDeco need to meet the community obligation including supporting locally based staff, paying local businesses and being open about the future,” Cr Campbell said.
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CuDeco hope to raise $11.75m in share placements which will be used to repay debts of $6m and the balance for working capital to resume mining and processing operations.
They have also signed a term sheet for the refinancing of existing Convertible Notes with the Valuestone Group, that will provide an additional $5.5m this month subject to shareholder approval and hope to rights $12-20m next year through a rights issue.
CuDeco said it had received commitments from its major lenders to support the Company and re-negotiate their existing facilities.
Former CuDeco’s director and chairman, Peter Hutchison said before he resigned, once negotiations were completed, and planning finalised for the rights issue, the Company believed it would be well placed to finalise its financial statements for the six months ended 31 December 2017 and the year ended 30 June 2018, which would allow the company’s shares to recommence trading.
Operations at the Rocklands project were suspended in August 2018.
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