NEW YORK Malaga Inc. is considering selling all of its assets after having kept its flagship Pasto Bueno Mine in Peru on care and maintenance for nearly five months.
The Montreal-based tungsten miner "is examining all possible alternatives to obtain financing or conclude a transaction with a strategic investor that could result in a merger or sale of a portion or all of its assets," the company said.
Malaga put its flagship Pasto Bueno facility on care and maintenance last October after a power line was severed and supplying diesel fuel to continue operations proved too costly (amm.com, Oct. 22). Production didnt restart even though the severed power line was repaired last year.
The company has faced financial difficulties amid low tungsten prices and poor results at the mine. Its last financial results were for the third quarter of 2012, when it posted a loss of $883,000 (amm.com, Nov. 15).
"Malaga is currently not capable of discharging all of its financial obligations as they become due," the company said, adding that it will continue to sell copper by-product stored on site and is currently evaluating an offer to sell some of its assets.
The company couldnt be reached for additional comment.