Managing Director Michael Kiernan said Monday that the small Australian gold miner is likely to be forced into administration after it failed to secure more short-term funding from part-owner Territory Resources Ltd. (TTY.AU).
The decision by Territory to cut off funds, and to appoint a receiver over one of Monarch's mine assets, has "put a significant question over the ability of Monarch to continue in its current form," Kiernan told Dow Jones Newswires in an interview.
"If we do in fact have to appoint an administrator - which is highly likely - it would then put a serious question over the ability of Territory to recover its funding," Kiernan said.
The problems at Perth-based Monarch, whose shares have been suspended since June 18, highlight difficulties faced by small Australian gold companies, despite enjoying multi-decade-high gold prices.
Many are trying to rework ageing mines that are faced with rising costs of labor, fuel and consumables.
MON Price at posting:
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