Gold miner WPG collapses

WPG Resources has called in the administrators after failing in its attempts to recapitalise the company.

Gold miner WPG collapses Gold miner WPG collapses Gold miner WPG collapses Gold miner WPG collapses Gold miner WPG collapses

Challenger in South Australia

EY was appointed as joint and several administrators of WPG and its subsidiaries.

The company said it was forced into the move after a key prospective investor withdrew from recapitalisation discussions.

"Accordingly, the directors have resolved that the company is insolvent or is likely to become insolvent at some future time," WPG said.

WPG was queried by the ASX in May over its balance sheet, with cash at the end of March of $4.8 million and expected cash outflows for the June quarter of $32.8 million.

"Provided that the budget for Q4 is met, the expected Q4 revenue of $36.6 million will comfortably exceed the expected cash outflow of $32.8 million," WPG said in its reply.

The budget of at least 21,500oz was not met, with the operations deli...