The West

Administrator Bryan Hughes remains hopeful of completing a sale of the Bronzewing gold mine to Michael Ruane's Metaliko Resources despite the collapse of the company's preferred funding.

Metaliko last night said it had been forced to scrap a $6.9 million equity raising earmarked to fund the $4.8 million purchase because of the loss of its underwriter.

The five-for-two rights issue was underwritten by a family company associated with Dr Ruane, Metaliko's executive director and major shareholder.

However, Metaliko said the company had withdrawn its support under the underwriting agreement, citing a fall in the all ordinaries gold index.

Metaliko could not be contacted. But Mr Hughes, the administrator of Bronzewing's failed owner Navigator Resources, said Metaliko remained keen to complete the transaction, which was due to close next week.

"Fortuitously, there is a substantial amount of support for this transaction," he said.

"There is still very good communication between us and a real prospect of doing something serious and sensible."

Mr Hughes flagged the possibility of revising the deal to give Metaliko more time and easier payment terms, though he added any changes could see the approvals process reset.

"There are many ways to skin a cat," he said. "As always, we have to work within the constraints and requirements of the regulatory system."

Bronzewing, 80km north-east of Leinster, ceased production following the failure of Navigator 12 months ago.

The West Australian

Latest News From The West

Popular videos

Our Picks

Follow Us

More from The West