The future of WA base metals miner Kagara was under a cloud last night after it decided to close its last operating mine.
_WestBusiness _ understands Kagara's board yesterday agreed to close the Balcooma copper mine in Queensland while it tries to secure a funding lifeline.
The decision coincided with Kagara placing its shares into a trading halt pending news "in relation to funding". Hard hit by weak commodity prices, Kagara has been trying for weeks to replace debt funding from long-term financier ANZ.
Neither chief executive Geoff Day nor executive director Joe Treacy returned calls yesterday.
However, Mr Day told _WestBusiness _ on Sunday the miner was considering "all options" to raise from $40 million to $50 million, including debt and a possible sell-down of its stake in spin-off Mungana Goldmines when its escrow period expired. Kagara is also believed to have held talks with cornerstone Chinese shareholder Guangdong Foreign Trade Group.
"We have a bit of interest from people wanting to participate in (zinc-lead-silver project) Admiral Bay … " Mr Day said.
"We have also been looking at what to do with our holding in Mungana. We can't do anything until after the June escrow period but that doesn't preclude looking (at) what our options may be.
"And then there is traditional forms of debt and financing which we are reviewing, looking at a new banking facility and other working capital facilities." He said the company remained solvent and that "the board is always making sure we are looking carefully at what we are doing and making sure there is enough cashflow to continue on."
KZL Price at posting:
12.0¢ Sentiment: ST Sell Disclosure: Not Held
