Adam Nikitins, Brett Lord and Samuel Freeman of Ernst & Young were appointed joint administrators of WPG Resources Ltd. as the ASX-listed gold miner can no longer meet the conditions of a term sheet with the Byrnecut Entities to complete a recapitalization.
According to a July 30 statement, a key prospective investor in WPG Resources withdrew from discussions, and its directors determined that it is insolvent or is likely to become insolvent.
In late December 2017, company unit Challenger Gold Operations Pty. Ltd. secured a A$20 million debt facility with Byrnecut Group, the mining contractor at the Challenger gold mine in South Australia, to continue operations.
WPG Resources is also facing an A$8.7 million lawsuit from former mining contractor Pybar Mining Services Pty. Ltd. after terminating its contract in August 2017.