The former chairman of failed gold miner Wiluna Mining has promised shareholders he will not back down in his quest for answers from the company's administrators, following a complex legal stoush in the Supreme Court.
Jerkovic's Pledge to Shareholders
Milan Jerkovic, who once led Wiluna Mining, has written to shareholders declaring his intention to maintain pressure on FTI Consulting. The administrators have been overseeing the company since its collapse in 2022. Mr Jerkovic stated he still lacks the answers he has been seeking and "intends to continue to press" for his inquiry into the administration process.
His campaign stems from ongoing frustrations that he and other creditors have not been paid, despite a buoyant gold price swelling the troubled miner's financial reserves.
Legal Manoeuvres and Court Setback
In October, Mr Jerkovic launched a Supreme Court action aiming to appoint Cor Cordis as investigators into Wiluna's affairs. This move was temporarily sidelined after FTI Consulting itself applied to the court.
FTI sought to exit its role as administrator and to waive incomplete conditions from a 2022 deed of company arrangement. Legal observers believed this action would have effectively terminated any potential investigation into the administration.
However, Justice Matthew Howard partly rejected and partly saw the administrators' application dropped. Justice Howard did resolve a critical issue within the creditor's trust that would have accidentally reduced proposed payments to unsecured creditors.
Administrators Aim for Relisting as Share Sale Adds Twist
Approximately $40 million is slated to be distributed to creditors next year, with FTI Consulting expressing hope of relisting the business. A spokesman for FTI noted the court found it "was not necessary" to rule on whether the administrators acted properly in seeking to waive conditions, as it was deemed a commercial decision.
The battle for control of the Goldfields mine took another turn recently. Russian investor Maxim Geyzer sold nearly 11 million shares to mining contractor Byrnecut for 72.5 cents per share. This sale is significant as administrators had previously reported in a creditor's update that Mr Geyzer had not paid $7 million for shares acquired in a May 2022 capital raising.
This transaction also signals another potential suitor for Wiluna ahead of a possible initial public offering next year. It follows an earlier offer from Annie Creasy's AIM Mining in late October to acquire Wiluna shares at 50 cents each.
