Strong interest
in Matrix Metals copper assets
QLD operations
continuing
Perth, 29th December, 2008
Matrix
Metals (ASX:MRX) receivers Gary Doran and John Greig
from professional services firm Deloitte have received strong interest from
more than 30 potential buyers for the Company’s Queensland copper assets.
The
receivers are pleased to today report that Matrix’s existing copper
assets including the production facility (9,0000 tonnes per annum capacity) at Mt Cuthbert in Queensland
are currently operating and delivering value for all stakeholders.
Matrix
Metals went into Voluntary Administration on 11 November, 2008, after which Glencore International AG, a secured creditor, appointed Mr Doran and Mr Greig as receivers and managers.
Mr Doran said Deloitte has received strong interest from
parities wishing to acquire all or part of the Company’s assets, or participate
in a reorganisation of the Company.
We
have seen a really strong interest and positive response Mr
Doran said.
To
date, more than 30 firm expressions of interest have been received, with the
closing date for indicative offers on 12 January 2009.
The
interest demonstrates that there are buyers out there for good assets, and that
if you are cashed up, there are certainly some good buying opportunities in the
current market, Mr Doran said.
Matrix’s
Queensland assets
include mining pits at Mt Watson and Mt Cuthbert, an operating production
facility (9,000 tonnes per annum capacity) at Mt
Cuthbert, and exploration tenements covering 3,600 km2 in and around Leichhardt and Cloncurry.
Mr Doran said the receivers had moved quickly, in
collaboration with the administrators, to obtain funding and to continue
operations of the Matrix assets.
?The best outcome for stakeholders was to take the company
to the market as a going concern, Mr Doran said.
?We have secured some funding to help achieve this, and
have been able to capitalise on the deep mining and
technical expertise within Deloitte to get the operation back on track and
generating some cash flow from copper metal sales, he said..
Mr Doran said the receivers had sold approximately 500 tonnes of copper metal since being appointed. The company
has also retained the majority of the Matrix workforce.
We
have secured funding, continued partial operations of the Matrix facilities and
have been able to generate cash flow through copper sales in the current market
all of which we believe is in the best interest of stakeholders, he said.
Deloitte is fortunate to have Partner, Corporate Finance Division, Dr Eric Lilford, a qualified
mining engineer, working with the receivers.
Unlike traditional receiverships, Dr Lilford has been assisting with the ongoing operation of
Matrix’s assets and assisting with identifying potential purchasers as
part of the Expression of Interest process.
Having joined Deloitte in July 2008, Dr Lilford brings additional strength to Deloitte’s reorganisation team in the areas of operational, investment and merchant
banking experience across the global resources sector.
Many insolvency firms need to source external advisors to assist with ongoing
mining operations and facilitating an EOI process. Fortunately, Deloitte can
offer a one stop service for corporate reorganisation
and we’re finding this a very powerful combination for our clients, Mr Doran said.
For further information:
For expression of interest:
Gary Doran / Glen Kanevsky
Tel: 08 9365 7163
Email: gkanevsky@deloitte.com.au
For media:
Warrick Hazeldine
Purple Communications
Tel: 08 9485 1254
Mobile:
0417 944 616
***
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