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Cairn Hill iron ore mine transfer

13 April 2015    


Corporate recovery specialist firm Ferrier Hodgson has successfully completed a transaction involving the transfer of the Mining Lease for the Cairn Hill iron-copper ore mine in South Australia, despite the iron ore price falling to a near record low.

The Cairn Hill mine, located 55 kilometres south-east of Coober Pedy, has been transferred to Perth-based Cu-River Mining Australia Pty Ltd for an undisclosed sum.

The transaction documents were executed in December 2014 and were subject to approvals from the South Australian government, the Department of Defence and the Federal Treasurer (under the Foreign Acquisitions and Takeover Act). The transaction was completed on Wednesday, 8 April 2015 following receipt of the relevant approvals.

The mine was previously operated by Termite Resources NL before the company became one of the first casualties of the recent collapse in iron ore prices. The company went into Voluntary Administration in June 2014 and later into liquidation in September 2014.
The iron ore price at the time of the Voluntary Administration had fallen around 34% to $US89 a tonne. It has since collapsed further to a low $US47 a tonne.

Ferrier Hodgson Partner, Mr Martin Lewis, said he was delighted with the transaction considering the conditions facing Australian iron ore miners.
“The transaction follows a comprehensive international marketing campaign conducted in conjunction with the PCF Capital Group,” said Mr Lewis.
“Cu-River Mining Australia has continued to invest in Australian iron ore assets and the company’s acquisition of Cairn Hill follows its acquisition of IMX Resources’ Mt Woods tenements late last year.”

The undisclosed sum received by Termite Resources from the transaction will be returned to Termite Resources’ unsecured creditors by way of a dividend in due course.

 

Ferrier Hodgson is one of the Asia-Pacific’s largest independent providers of corporate recovery, advisory and forensic services.

Simon Hatcher, Hughes Public Relations
Ph: (08) 8412 4105 or 0419 780 071