KAGARA Mining has again suspended its shares from trading as it tries to refinance its debt facility to ensure the company, which has put all its operations on care and maintenance, keeps its doors open.
The struggling miner requested the suspension because it was unable to provide a funding update by yesterday, which was the deadline given when Kagara's shares were placed in a trading halt on Tuesday.
The Perth-based company also announced this week that it had temporarily suspended mining operations at Balcooma and polymetallic milling operations at Mt Garnet, both in Queensland, pending a funding announcement. Kagara had already suspended activity across its other projects.
Kagara also suspended trading in its shares in March because of the delayed release of its half-yearly report.
Kagara lost 38 per cent of its market value in one day when trading resumed as investors reacted negatively to the release of the miner's survival plan, which included 130 job losses at its mines and its Perth head office. Rec Coverage 28 Day pass
Shares in the company last traded at 12c.
At the end of December, Kagara held a $40 million corporate facility with ANZ, an $11m leasing facility, and a $32m guarantee facility, with $22m of performance bonds being drawn down. The company had announced in its December half financial report, released last month, that it would need to secure additional finance or obtain sufficient funds from the sale of additional non-core assets to remain a going concern.
Kagara did not respond to The Australian's interview request
KZL Price at posting:
12.0¢ Sentiment: None Disclosure: Held
