(Alliance News) - Avocet Mining PLC said Thursday shareholders had failed to carry a vote allowing the firm to pursue a voluntary insolvency and wind-up, with an administration now likely to be pursued.
In mid-July, Avocet warned investors that its "residual cash resources provide headroom only for a few weeks of running costs" and that before it exhausted this cash "in order to avoid an insolvent liquidation, immediately seek to obtain approval of the resolutions required for a members' voluntary liquidation to be implemented".
On Thursday, just 56% of votes cast were in favour of entering voluntary insolvency with 44% opposed. A similar proportion also opposed the appointment of liquidators. Only 25% of total shares voted on the resolutions.
Avocaet emphasised it "shall now pursue a formal insolvency process by way of an administration".
"Until the company has been placed into administration," Avocet added, "the board remains open to explore viable funded investment opportunities. A further announcement will be made in due course."
Shares in Avocet closed untraded at 11.62 pence in London on Thursday.