ValenceIndustries Ltd. has been placed in voluntary administration withthe appointment of Laurie Fitzgerald and Michael Humphris of William Buck asadministrators, according to a July 15 ASX filing.
The troubled Australian graphite explorer processing activities at itsUley graphitemine in South Australia in early December 2015 to reduce operating costs.
Managing Director Robert Mencel said at the time that theexisting production rate was uneconomic and could not continue.
Subsequently, Valence entered into talks with severalparties in the hopes of securing a potential corporate deal, including a takeover,or a cash injection.
In its March quarterly report, the company said the boarddetermined that the best way forward was to undertake a partially underwritten9-for-1 rights issue to raise up to A$18 million to recapitalize its balancesheet and pay off debt.
However, the rights issue never went ahead and Valence hadjust A$148,000 in cash at the end of the March quarter, A$6.3 million ofsecured debt and unsecured creditors of about $6.0 million, as well as anestimated cash burn of A$300,000 for the June quarter.
Valence needed an additional A$7 million in CapEx and up toA$5 million in working capital to restart production at the Uley mine.