How is it going DMA --- I spoke to Michael Kiernan at a Monarch...

How is it going DMA
--- I spoke to Michael Kiernan at a Monarch presentation on the Gold Coast last week --- obviously he was there for MON and not CRS – but I took the opportunity to ask him --- he said while CRS was under administration he was not privy to any info not publicly released --- but he seemed very doubtful that shareholders would ever see any money --- as soon as Mitsui would not cooperate it was curtains. He did say it is still the same mine that operated well for 70 + years and still had a good future if well managed – unfortunately not in our hands most likely.

Todays announcement would seem to contradict this sentiment and give hope – but I doubt it very much.

051006:
From today’s announcement:
“The company sought the exemption and extension so as to, inter alia, (“amongst other things.") allow time for the Deed Administrators to facilitate a recapitalisation of the company leading to the requotation of the Company’s shares on the ASX (refer to the companies announcement to the ASX dated 19 Sept 2006) --------- etc, etc ----------- the companies financial position has significantly been effected by the Voluntary Administration regime.

Note the article below from the West Australian.
Buyers eye Croesus bones
20th September 2006, 14:30 WST

Perth junior Avoca Resources and South Africa’s Harmony Gold are understood to head the short list of six preferred bidders for the remains of failed gold miner Croesus Mining.
The list is also understood to include Mark Ashley-led explorer Apex Minerals, a British-listed miner, a North American gold producer and a miner from the Eastern States all eager to acquire Croesus’ Norseman gold mines.
But existing Croesus shareholders are unlikely to share in any revival of the former WA gold icon.
Chairman Michael Kiernan confirmed yesterday that his proposed restructure had been knocked back by administrators from Pitcher Partners.
The Perth insolvency and turnaround experts took charge of Croesus in June after Japanese hedging partner Mitsui Precious Metals withdrew its support for the proposed restructure over the timing of the repayment of a $12.5 million debt.
Mitsui’s action made administration inevitable, even though major hedging partner Macquarie Bank — itself owed over $50 million — had backed the restructure which had already put the mines on track for a return to profitability.
Creditors jointly owed about $70 million in July approved a holding deed of company arrangement that gave Pitcher Partners until early December to evaluate bids for the Norseman operations, which are currently producing at a rate of almost 100,000 ounces a year.
Administrator Bryan Hughes said yesterday that six parties had been short listed to start due diligence this week before the final bids were due, at the end of next month.
He said they represented a mix of international, local and east coast companies.
Mr Hughes said the identity of the parties was confidential, but he was confident a good outcome would be achieved for what remained a highly attractive asset.
“The field has produced 5.5 million ounces of gold, which makes it one of the richest bits of gold-bearing earth anywhere . . . and the place is absolutely littered with the stuff still,” he said. “So it’s a great opportunity.”
Mr Hughes said the new owner would not be free of Croesus’ debts, meaning the enterprise value of the business would be “considerably higher” than its market worth of $97 million at the time of its collapse.
Not surprisingly, neighbouring miner Avoca Resources is understood to head the list of short listed bidders.
Avoca, which is developing the neighbouring Higginsville gold project to the north, previously discussed both a potential merger and toll milling deal with Croesus.
Similarly, magnate Bernard Swanepoel’s Harmony is understood to be running the numbers to further boost its flagging fortunes in WA.
Since it acquired producer New Hampton Goldfields in late 2000, Harmony has struggled to recoup the $430 million it subsequently spent acquiring WA miners Hill 50 Gold and Abelle.
Apex has been on a concerted hunt for a cornerstone mine asset since it came under Mr Ashley’s control in April.
Croesus boss Mr Kiernan, whose Monarch Gold is planning to start production at Croesus’ former Davyhurst mine next year, said his proposal to recapitalise and restructure the company had been knocked back by the administrators.
“I put a proposal to do a reconstruction on behalf of shareholders but they (the administrators) haven’t accepted it,” he said.
Mr Kiernan said he was focused on ensuring Monarch started production next year after raising $11.5 million in a placement to sophisticated investors at 23¢ a share yesterday.
Monarch would now seek debt funding to raise the remaining $15 million it needed to restart Davyhurst and the Minjar gold mine in the Murchison, which should jointly be producing at 150,000 ounces a year by late next year, he said. Monarch shares closed steady at 25.5¢. ----- John Phaceas