Compass Resources goes into administration

The Australian - Business

JUNIOR mineral explorer Compass Resources has called in the administrators despite having $9 million cash in the bank.

The company has appointed Steven Sherman, Darren Weaver and Martin Jones of Ferrier Hodgson as voluntary administrators.

The move comes after Compass said on Tuesday it was reviewing among other things “the current price for metals, delays encountered in full metal production commencing from the Browns Oxide Plant (in the Northern Territory)... and the current debt and cash position of the company”.

It said at the time that while its financial position was suitable to continue trading in the short term, it planned to conduct a capital raising to meet working capital requirements.

Compass listed on the Australian stock exchange in 1987 and aimed to have three mines in production by 2011.

Its core focus was the Rum Jungle mineral field in the Northern Territory.

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