Brandrill implodes

ONGOING cashflow problems and failed recapitalisation attempts have led struggling drill and blast contractor Brandrill to voluntarily appoint Bentleys MRI as administrators, leading major creditor Commonwealth Bank to appoint Ferrier Hodgson as receivers.

Rebecca Keenan

The slide into administration and receivership of the once glamour contractor follows a miserable 2-3 years which started with an ill-fated foray into the South African resources sector.

 

Ongoing cash flow problems with its South African subsidiary Brandrill Torex saw the Pinjarra-based company try (unsuccessfully) a number of times to offload the business. BTX was ultimately liquidated.

 

In April Brandrill attempted a $13.5 million recapitalisation $13.5 million via a three for two non-renounceable pro rata rights issue at 1c.

 

That offer failed to attract sufficient market support and was adjusted earlier this month to incorporate a minimum $9.5 million raising at 0.25c in combination with a 1 for 20 share consolidation – managed by Patersons Securities – though, as it turned out, all to no avail.

 

Contracts understood to be held by Brandrill include the Woodie Woodie manganese and Coobina chromite projects owned by Consolidated Minerals (recently signed for 2 years and worth a combined $10 million); a 3 year contract worth $9 million with Roche Mining for drilling at the Wodgina open pit mine which commenced in October last year, and; a 5 year contract worth $16 million with Ensham Resources at the Ensham coal mine in the Bowen Basin.

 

Brandrill closed trading today at 1.6c, unchanged, on the ASX.

 

MiningNews.net

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