Tin explorer, Consolidated Tin Mines (CSD), entered voluntary administration on Tuesday following critical delays to discussions surrounding its working capital requirements and funding options. The company owns the Mount Garnet tin project and Surveyor base metal mine in North Queensland, Australia, from which it had been producing zinc, copper and lead.
The company ended the first quarter of 2016 with a $A 311,000 cash flow deficiency and remaining cash of just $A 53,000, following which it was forced to cease mining operations due to lack of working capital.A secured loan guarantee of US$20M against company assets from a Chinese Commercial Bank was announced in February but ran into delays, with recent efforts to access these funds proving ineffective.
The companies mining operations will continue to trade while administrators maintain the mine on a care and maintenance capacity. Meanwhile, the directors are looking to restructure the company’s affairs through a Deed of Company Arrangement,
