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.