INTERCEPTS Sun 24/08/2014

Debt laden Hellyer polymetallic mine to close

20th Apr 2012

PERTH, Apr 20 – Despite the scheduled end of June cessation of operations at the debt-laden Hellyer polymetallic mine in north-west Tasmania, owner Bass Metals still believes the project has a future.

Plans are already well advanced to move Bass’ operations to a smaller office in Perth to aid the current corporate and mine restructuring process.

The company’s debt repayment plan puts current liabilities at $A15.4M to creditor RMB Australia and $8.5M to other creditors. Based on current receivables, current metal prices and operational performance, Bass expects to reduce its overall debt position to about $10M in mid-2012.

There is a further 25,000t of predominantly copper, lead, zinc, silver ore remaining at the Fossey underground mine to be recovered from the stopes and hauled to the Hellyer run-of-mine stockpile for processing. Mining activities are planned to be completed in late April 2012, after which the Fossey mine will be placed on care and maintenance.

The ROM stockpile contains about 23,456t of ore, which together with the ore to be hauled from the underground mine indicates a further 48,456t remains to be processed. On completion in late May, the Hellyer mill will be shut down and placed on care and maintenance.

The Bass plan is to restructure and pay down a major portion of the existing debts through internal cash generation from the operational work-out and seek additional funding through asset sales and/or new equity to erase the residual debt and provide funds to re-start an exploration campaign and test work program for the Hellyer project.

To this end, the company says it is discussing a range of corporate, JV and divestment transactions with a number of parties. Nothing has been finalised as yet.



Also in the April 11 - 17, 2012 edition

Beacon shines in Mozambique
Orpheus plays to its own tune
Central Asia mining conference grows in stature
Artemis takes high road to Lowlands
Breaking the ice
Blue Horseshoe loves Rio, FMG …
Venturex presents new picture
Early equity market gains suggest more to come
Cerro Negro continues to shine for Goldcorp
Gold to break back in H2
Cat concludes another big Bucyrus deal
ABM doubles resources
ACR plans Pickstone project funding
Altona maintains production build-up
AMC delivers positive Scotgold news
Anglo American keeps Kolomela growing
Aquila raises Thabazimbi DSO resource
Aston action heads to Supreme Court
Atlas Copco scores in South Africa
Ausdrill secures $A150M term debt facility
Benkala copper output in sight
Bezant says Eureka progressing
BHP looks beyond short-term woes
BHPB warns of IR damage
Bonanza gold points to resource lift
Bungaroo work awarded
Canadian PM puts Peru pledge
Cape Lambert breakthroughs spur Marampa
Carbine ships tungsten to Mitsubishi
Castlemaine likes LionGold offer
Celamin aims to raise $A10M
Centamin output up
Centaurus narrows production focus
Chameleon appears on manganese trail
Changes offer better times for Weatherly
Coburn zircon backing delayed
Colluli resource lift for potash hopeful
CuDeco clears port hurdle
De Grey gains on royalty sale
Donlin partners set to begin permitting process
Doray commits to BFS
DRC gold mine heads toward production
Endeavour to buy El Cubo
Eshuys takes Apex helm
Ex-pollie joins Guildford Coal
Excellon excels in Mexico
First Uranium outlines Ezulwini woes
Fresnillo targets giant production hike
Gindalbie highlights shipping dates
Glass Earth looks beyond Martha
Gold Fields maintains guidance
Gold One spies new opportunity
Greenpower lifts coal resource
Hancock after Blair lookalike
Hard going on rock of Gibraltar
Harmony identifies reasons for output drop
Hebei buys into Canadian iron ore project
Henty back on golden track
Hothschild on course for 20Moz
Housing relief in site
Hrazdan ties Fortune to iron
Hughes to chair Ferrowest
Iluka looks to extend Sonoran mine life
Iluka signs new finance deal
Kalsaka boost for Cluff
Kangala BFS confirms positive outlook
Kent targets industrial mins at Reefton
Kentor on track at Burnakara
Kingsgate aims for September Teterita study finish
Lithium star closer
Lynas battle not over
Lynas fate in science minister's hands
Magnitogorsk fights legal block
Masbate production up, costs down
Metaliko targets 2012 gold production
Millennium has Nullagine on course for production
Mincor gets costs under control
Miners contest Sierra Leone’s diamond changes
Mount Elliott shapes as flagship
New Ivanhoe appointments in Rio wash up
New legal front opens at Ken's Bore East
New Prosperity finally on the cusp
New sting in Mineral Ridge case
New, bigger plans for Tembang
No rush on Flinders
Noble tops up Bibiani funding
North River completes Namib dewatering
Novopro appointed to do potash study
Nullagine JV raises production bar
OceanaGold sets Blackwater target
Paguanta hits point to resource revision
Palabora works through mining shift
Pause for thought at Tulkubash
PE gets behind South Mountain
Peel takes option on Mallee Bull
Permit clears the way for Cluff
Peru Cat deal continues Bucyrus redistribution
Polymetal on track for 1Moz
Proto gets iron ore surprise
Quintessential plan takes shape
Railway opens up coal resources
Ravenswood, Siama lift Resolute
Red5 reaches commercial status
Review leads to Baal Gammon closure
Rio takes control
Rio’s modest thanks to weather gods
Road to production gets diamonds moving
Robinson joins Energia
Rockwell a turnaround work in progress
Rum tops up funding for NT studies
Sale clears VDM debts
Sandpiper shapes up, UCL bid shaky
Soggy summer hits Vale production
St Barbara gold output surges
Strike won't cut diamond output, says Namakwa
Study improves Merlin economics
Sydvaranger quality improves
Talvivaara keeps its sights high
Twin gold project strategy pays off for Mungana
UGL secures new contracts
Underground to underpin Productora
Unique uranium demo plant to start next month
West Peak raises sights
Wildhorse to offload Sweetwater
Winter won't change production course: Anglo
Auto-mining’s missing pieces
Expomin provides stage for first Vulcan 64-bit release
Interoperability and the mine of the future
Mining IT in brief: Ventyx, SolveIT, Mintec
User says software comes with kid gloves
People on the move: Doray, Thor
The cost of dilution ultimately undermined the solution
Avanco wins some support
Technically speaking