Bounty goes into voluntary administration

TROUBLED narrow seam coal mine contractor and developer of the Wongai coal project in North Queensland Bounty Mining has been placed into voluntary administration.

Lou Caruana

As reported in International Coal News yesterday, the directors of the company warned that if it could not obtain funding its projects and the company’s future as a going concern was in doubt.

The company, which lost contracts with Anglo American in central Queensland, had been struggling for some time and saw the development of the Wongai coal project as a means of offsetting the drop off in contracting work.

BRI Ferrier administrator Robyn Karam said in a statement: “On 11 November 2016, Marth John Green and I were appointed joint and several voluntary Administrators of Bounty Mining.

“The appointment was made pursuant to Section 430A of the Corporations Act 2001 by a resolution of the company directors.”

During the 2015 financial year borrowed $17,000 from a company associated with its chairman and CEO Gary Cochrane.

This was short-term working capital loan unconnected to the company’s major loan facility. This loan was partially repaid during the September 2015 quarter.

“While the company remains in active discussion with a number of interested parties regarding other financing options, no funding commitments have been received at the time of release of this document,” Bounty said.

In July 2015 the company’s continuous miner and its spare parts were sold to a private purchaser for $0.25m and $0.05m respectively, which the board said it considers to be a fair value in the current market.

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