Michael Kiernan revisits Monarch Gold. June 23, 2009 Article...

Michael Kiernan revisits Monarch Gold.
June 23, 2009
Article from: The Australian
MINING identity Michael Kiernan is attempting another crack at Monarch Gold almost a year after it collapsed under his watch.

It is understood that through his new investment vehicle Stirling Resources, Mr Kiernan has reached an understanding -- expected to be announced today -- with Monarch's administrators Pitcher Partners.

The deal is expected to involve Mr Kiernan's company paying out all of Monarch Gold's creditors in full.

Stirling Resources went into a trading halt yesterday "pending an announcement regarding recapitalisation plans for Monarch Gold".

The gold miner, which Mr Kiernan headed as managing director, was forced into administration in July last year after operational issues at its Davyhurst mine near Kalgoorlie, which it had picked up from Croesus Mining, which ran into its own problems in 2006 when it headed into administration.

Monarch also suffered financial difficulties after controlling shareholder Territory Resources refused to agree on a rescue package for the miner.

The deal with the administrators needs the approval of Territory, which Mr Kiernan used to chair but with whom he has since had a major falling out.

In August last year, Pitcher Partners' Bryan Hughes said after a creditors' meeting in Perth that Territory Resources was owed $24 million by Monarch Gold and that external creditors related to the Davyhurst operation were owed $12m.

It is believed that Stirling Resources supporters DCM DECOmetal -- a global commodity marketer -- and NMDC -- a major Indian resource enterprise -- are backing Mr Kiernan in his move on Monarch.

DCM DECOmetal was also an investor in Consolidated Minerals, which Mr Kiernan built from the ashes of collapsed Valiant Consolidated.

Monarch's best asset is the Mt Ida underground gold mine southwest of Leonora.

Stirling Resources also recently completed a $4.25m acquisition of the high-grade zircon assets previously owned by Matilda Minerals.

Mr Kiernan was Matilda's major shareholder, with a 32 per cent stake. Territory Resources was Matilda's other main shareholder with 27.4 per cent.

Good Luck to All Holders