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.
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.
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