Ardmore phosphate mine operator Centrex has called in the administrators after repeatedly extending the closing date for an entitlement offer hoped to raise more than $10 million.

Centrex securities have been suspended since late last year as the company fought to boost its bank balance and complete its Stage 1.5 expansion project at Ardmore.

It launched the entitlement offer in January to raise about $10.4 million, subject to a minimum subscription condition of $9.0 million.

At the time, chief executive officer and managing director Robert Mencel described the move as a vital step in ensuring the financial viability of the company moving forward and completing the expansion.

This would see essential plant upgrades to achieve 625ktpa of beneficiated phosphate production.

The company warned that failure to reach the $9 million mark in the capital raise would create an urgent need for alternative sources of funding and capital spending constraints.

Such measures may include: ceasing mining and mine development activities at the Ardmore mine; sale of additional assets in the portfolio; further debt and equity capital initiatives; and sale of the assets or the business, it said at the time.

It was announced today that John Park and Joanne Dunn of FTI Consulting had been appointed as voluntary administrators.

FTI Consulting said the voluntary administrators were continuing to operate the businesses of Centrex and Agriflex with a view of assessing possible restructuring options.

Creditors and suppliers should direct enquiries to centrex@fticonsulting.com

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