Valence Industries, owner of the Uley graphite mine south west of Port Lincoln, has entered voluntary administration after failing to raise capital.
The company suspended trading in November, and in December, ceased production at the Uley site. It required $7 million in capex and up to $5 million in working capital to recommence operations, according to a report by The Advertiser.
A nine for one rights issue was announced by the company in March, aiming to raise $18 million to alleviate mounting debt. However, it has been cancelled.
The shut down has been attributed to poor selection of consultants, failure to identify deficiencies to prevent cost overruns, and poor project management.
Read the full article at: https://www.australianmining.com.au/news/valence-industries-enters-voluntary-administration/