Another junior bites the dust, as the directors of Sherwin Iron place the company into voluntary administration.
On July 8 Sherwin announced that they had ceased operations for a temporary closure of the Roper River iron ore project, retrenching 50 workers involved in the transport of a 400,000 tonne sample of product to China.
Managing director and executive chairman Rodney Illingworth said the permanent workers had been asked to take leave without pay, and that operations would resume within one or two months.
Director Peter Heading resigned on the same day.
Only three days later Illingworth has announced to the ASX that Ferrier Hodgson have been appointed as administrators of the company.
Illingworth said that a decision by the company’s major shareholder, Citizen International Investment, not to support the recent non-renounceable rights issue had hindered the ability of the company to continue operations.
“The Ability of the company as a going concern was dependant on securing the release of cash under its facility with [company lender] CPPIB,” Illingworth said.
“After discussions with CPPIB, the company was unable to secure the release of such cash within the timeframes required.”
Sherwin Iron last traded at 2.7 cents, down from 4 cents on Tuesday.