(Alliance News) - Rambler Metals & Mining PLC on Friday said it has "no means to continue to operate" as funds have dried up.
Rambler said it has no choice but to file for voluntary liquidation as it said it is unable to "pay its debts as they fall due".
The update from the mining and development company, which holds properties in Newfoundland and Labrador, Canada, follows Rambler's announcement last week that it was insolvent and filing for creditors voluntary liquidation.
Rambler said that its ordinary shares would continue to exist pending completion of liquidation, despite their cancellation on the London Stock Exchange's AIM market. It said that the liquidators would retain information regarding ownership of shares in Rambler, should there be any funds to distribute back to shareholders.
Funding previously received by Rambler "flowed up" from cash generated by Rambler Metals & Mining Canada Ltd, which has now ceased to operate. Rambler Canada is no longer operating.
Rambler said that without the funding, it had "no means to continue to operate" and could no longer pay its debts as they fell due. Lenders has part of the Companies Creditors Arrangement Act, Canada have said they can no longer provide funding to the wider Rambler group.
Rambler also added that there is no guarantee that any surplus cash could be distributed to shareholders.
"It is important to provide some level of process certainty that Rambler Metals & Mining PLC be allowed to liquidate in an orderly fashion. The alternative to a voluntary liquidation is a compulsory liquidation, a court-lead process that is more expensive, more time-consuming, and would diminish further any potential value for shareholders," the company said.
Shares in Rambler were untraded at 5.50 pence in London on Friday.
By Emma Curzon, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.