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[Ferro-Alloys.com]Shaw River Manganese has joined Consolidated Minerals and OM Holdings in waving the white flag over manganese mining operations, calling in Pitcher Partners as voluntary administrators late last week.
Like its two far larger peers Shaw River cited the parlous state of manganese prices for its decision, saying it had been unable to keep ahead of the tumbling market and could not find backers to pump in money through a capital raising launched late last year.
The Namibia-focused minnow was majority owned by Brett Stanton’s Bryve Resources. Mr Stanton bought out Atlas Iron’s 43 per cent stake in Shaw River at 0.35¢ a share early last year, and extended the company a credit line of up to $8 million through convertible notes to fund development and operations at its Otjozondu project.
Shaw said that credit line had not been fully drawn down when it called in administrators last week, but after shareholders stayed away from a 1.2¢ share purchase plan in November and December, Bryve advised the company its capacity for further lending was limited.
Otjozondu was a tiny operation compared to ConsMin’s Woodie Woodie and OMH’s Bootu Creek. It exported only 14,000 tonnes to China in the September quarter, and was targeting a 300,000t a year operation in 2016.
Shaw River said the collapse of manganese operations in Australia and Africa in the past six months had led to early signs of a price recovery. It hoped stronger demand after China’s holiday season would help administrators restructure the company.
Shaw shares last traded at 0.9¢.
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