UPDATE 1.20pm: Straits Resources has filed for bankruptcy for its Indonesian subsidiary after placing its Mt Muro gold mine on care and maintenance in August last year.
Straits executive chairman Andre Labuschagne described the move as "the least preferred outcome" for PT Indo Muro Kencana but said efforts to find a buyer had failed despite interest from several parties.
"Therefore the directors of PT IMK were left with no other choice but to petition the Indonesian Commercial Court to commence voluntary bankruptcy proceedings," he said.
"The process of obtaining court approval for PT IMK to be declared bankrupt can take up to 60 days.
"Once approved by the Indonesian Commercial Court, PTIMK will move into administration and be managed by a court appointed Curator (Receiver)."
Mr Labuschagne said the legal status or solvency of the remainder of the company was unaffected.
Straits remaining asset is the Tritton copper mine in New South Wales.
Straits shares closed up 0.1 cent, or 14.29 per cent, at 0.8 cents.