smh article this morning

From the sydney morning herald. Looks like it was all just a bit too much for MK to handle. Must have spat the dummy at our expense.

MONARCH Gold, the gold investment of the Perth mining identity Michael Kiernan, collapsed into administration last night, after the failure of a last-ditch attempt to recapitalise the company.

Monarch is believed to owe about $25 million combined to junior miners - previously headed by Mr Kiernan - which had recently moved to cut links with the former head of Consolidated Minerals.

The chairman of Territory Resources and India Resources, Andrew Simpson, last night said he was "extremely surprised" that Monarch had entered voluntary administration. He said Territory had been in the process of finalising a revised loan repayment schedule that would have allowed Monarch to stay afloat. Territory owns 19.9 per cent of Monarch.

Hours before Monarch entered administration, India said it remained in talks with Monarch about a $3.5 million outstanding loan balance and there was no reason to suggest Monarch would not meet its obligations.

On Monday Monarch announced plans for a $25 million capital raising underwritten by Mr Kiernan, to which he personally pledged at least $15 million.

Monarch's administrator, Brian Hughes, of Pitcher Partners, told the Herald Mr Kiernan had paid Territory $1.75 million on Friday and was progressing with a deal, but the detailed terms became too onerous. Monarch owes Territory $21.5 million and Mr Hughes likened the pair to "conjoined twins", because of Territory's large shareholding.

Mr Hughes said he was hopeful Monarch could be rescued from administration after selling assets and being recapitalised. Some of the inter-company loans are secured over assets, such as Monarch's Minjar mine, which it agreed to sell to Aard Metals this year. The sale has not been completed.

This week Monarch restructured a deal to buy the Mount Magnet operations from South Africa's Harmony Gold but it is now unclear whether Monarch will be allowed to keep the assets.

Mr Hughes said Monarch preferred to keep the Mount Ida mine. The Herald understands Jupiter Mines has expressed interest in the mine's camp facilities.