IMC gives View Resources a $19m lifeline11-March-08 by Edited...

IMC gives View Resources a $19m lifeline
11-March-08 by Edited announcement

View Resources Ltd major shareholder IMC Resources (Australia) Pty Ltd has thrown a lifeline to the failed gold miner, offering to advance a $19 million loan to View's administrators.



The full IMC Resources announcement appears below:

IMC Resources (Australia) Pty Ltd (IMC) confirmed today that it would, through a wholly owned subsidiary, lend the recently appointed administrators of View Nickel Pty Ltd (Administrators Appointed) (Receivers and Managers Appointed), Andrew Saker and Darren Weaver, both of Ferrier Hodgson, A$19 million, under Section 443A of the Corporations Act 2001.

The Board of View placed the View group in voluntary administration on 8 February 2008.

IMC holds 19 per cent of View.

The loan shall be used to repay View's outstanding secured loan to Investec Bank Limited (Investec), and the balance to fund View's capital contribution towards the development of its nickel asset Carnilya Hill (subject to due diligence).

Any proposed restructure will require the support of View's stakeholders. A deed of company arrangement will be proposed for each entity in the View group. Under the loan terms, IMC may immediately demand repayment of the loan should a satisfactory due diligence or restructuring not be achieved.

IMC Resources group CEO Ms Jyn Sim Baker said that the loan is designed to provide an opportunity to restructure View.

"We are keen to work with key stakeholders of View to achieve a viable way forward" Ms Baker said.

Drawdown of the loan will be staggered, the first drawdown to repay the Investec loan.