Shareholders in Australian Magnesium Corp approved a restructure over liquidation. This gives the company another shot at starting its light metal programme after moth balling its Stanwell project after costs ran out of control.
Shareholders no doubt voted for the restructure as they stood to get nothing if the plant was liquidated and the company repaid loans to the state and federal governments.
The restructure will mean that the company will review all funding and development alternatives for the design, construction and financing of a new plant in place of the Stanwell plant. Furthermore, the company has been reorganised into three business units: Advanced Magnesium Technology; Magnesium Primary Production (which include the Stanwell Project); and Queensland Magnesia Limited.
They hope to create demand for new proprietary alloys they have been developing for the automotive industry, with samples et to be shipped to potential customers shortly. They will also continue to develop and commercialise magnesium processing technology, some of which has just been licenced.
Meanwhile the Stanwell project is not completely dead, with cost cutting reviews and partner searches under way to revive the project.
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