Deadline looms for Aurora Metals contenders

Aurora Metals’ group of mines could again be split in the hope that someone can find a way to make a buck out of any of them.

Would-be bidders on the assets of collapsed base metals play Aurora Metals have until August 21 to express an interest to receivers Grant Thornton.

The group of mines could again be split in the hope that someone can find a way to make a buck out of any of them.

Aurora collapsed in parlous circumstances in early July, when mining services company Emeco called in KordaMentha as administrators after Aurora failed to pay the bills to keep the pumps running at one of its mothballed Queensland mines.

At the time, according to KordaMentha’s Tony Miskiewicz, Aurora had run out of cash, fuel, and even food for its remaining workers – collectively still owed for their last six weeks of wages before Emeco finally called time on the mess.

Grant Thornton partners Phillip Campbell-Wilson and Said Jahani followed KordaMentha into the job, appointed receivers and managers by the company’s major secured lender, Mt Garnet Mineral Finance, which claims to be owed $34.7m.

On paper that should be a relatively easy target, given the group controls four mines and two processing plants – the replacement cost for those alone means the quick sale Grant Thornton suggests is possible.

But Aurora’s collapse is the fifth time all or part of the Kagara asset group has gone under in the last decade, since the spectacular failure of one-time market darling Kagara in 2012 as metals prices plunged, despite bold plans to become a big regional player.

Consolidated Tin Mines bought some of Kagara’s assets in 2013 and restarted the Mt Garnett underground mine, but collapsed in 2016, before a 2017 recapitalisation returned it to business.

Other Kagara assets, including the Chillagoe precious and base metals mine, were bought by Denham Capital-backed Auctus Minerals – which fell over in 2020. Red River Resources, which owned Kagara’s Thalanga base metals operations – went under in 2022.