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- The future of Altura Mining (AJM) has been thrown into confusion after the struggling lithium miner entered into receivership earlier this week
- The newly appointed receivers and managers are part of advisory and investment firm KordaMentha and have now been granted effective control of the company’s assets
- KordaMentha now plans to “immediately commence a process to market Altura and its assets for sale and recapitalisation opportunities”
- The company’s assets, including its flagship Altura Lithium project, are expected to transition to care and maintenance over the next few weeks
- Altura Mining (AJM) last traded at 7 cents per share
The future of Altura Mining (AJM) has been thrown into confusion after the struggling lithium miner entered into receivership earlier this week.
The two new receivers, which hail from advisory and investment firm KordaMentha, have now been granted effective control of the company’s assets, including its flagship Altura Lithium project in WA’s Pilbara region.
The project, which only commenced operations in 2018, was awaiting a final investment decision on a stage two expansion after the company approved a new off-take agreement with Hunan Yongshan Lithium late last month.
The company first entered into a trading halt back in August amid a planned restructure of its debt, which has spiralled out to more than $200 million after labouring under a prolonged slump in lithium prices.
In place of the company’s own restructuring plans, the newly appointed receivers and managers will perform an “urgent assessment of the company’s financial position” and intend to transition its operations to care and maintenance over the next few weeks.
Perhaps most concerning for investors, KordaMentha’s new appointments intend to “immediately commence a process to market the company and its assets for sale and recapitalisation opportunities.”
This shock revelation may come as a surprise to investors, as Managing Director James Brown commented promisingly on the company’s prospects in an update released late last month.
“We are also pleased with the support being shown by our lenders while we work through the process of restructuring our balance sheet to achieve reduced financing costs and ensure the long-term sustainability of the business,” he said at the time.
Despite James’s recent comments, the news of receivership seems at odds with company’s continuing operations.
Altura Mining (AJM) last traded at 7 cents per share.
