UPDATE 11.30am: The future of WA base metals miner Kagara is under a cloud after it decided to close its last operating mine.
Kagara confirmed this morning what had earlier been revealed in WestBusiness that it had closed its Balcooma copper mine in Queensland and polymetallic milling operations at Mt Garnet while it tries to secure a funding lifeline.
"Processing of primary copper ore at Mt Garnet is unaffected at this time," the company said in a statement.
Shares in the company were placed in a trading halt yesterday and were still in suspension this morning.
Hard hit by weak commodity prices, Kagara has been trying for weeks to replace debt funding from long-term financier ANZ.
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". Kagara shares last changed hands for 12 cents.
KZL Price at posting:
12.0¢ Sentiment: Hold Disclosure: Held
