The primary challenge for Cor Cordis was to secure funding to ensure the ongoing trading of the Adaman Resources Group and to safeguard the maximum value for stakeholders. Without sufficient funding, the value of the group’s assets would have significantly diminished and reduced the returns for stakeholders.

To mitigate risks, we focused on the following key challenges:

• Minimising mining-related incidents: We implemented measures to mitigate potential risks associated with operating a mine, such as implementing safety protocols to limit accidents. By prioritising employee safety, we aimed to minimise harm and maintain a productive and secure working environment.
• Managing CAPEX projects: We carefully assessed the risks associated with undertaking significant capital expenditure (CAPEX) projects to sustain the mining operation. We developed comprehensive project management strategies to ensure that these projects were executed efficiently and effectively, minimising delays and cost overruns. This approach aimed to prevent immediate shutdowns and maintain the continuity of operations.
• Addressing financial challenges: Operating a significant mining operation that was trading at a loss during the administration process presented inherent financial risks. We worked to analyse the financial situation, identify areas for cost reduction and operational efficiency, and implement measures to mitigate the financial strain. This included negotiating with stakeholders, optimising cash flow, and exploring potential revenue streams to improve the financial viability of the operation.

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Led by Jeremy Nipps and Barry Wight, our team at Cor Cordis developed a comprehensive strategy to address the challenges faced by the Adaman Resources Group during the administration period. The key elements of our strategy encompassed:

• Urgent review and viability assessment: We conducted a thorough review of the group's affairs to evaluate the feasibility of continuing to trade during the administration. This assessment helped us determine the best course of action to maximise value for stakeholders.
• Continuation of operations and seeking expressions of interest: Recognising the benefits of maintaining ongoing operations, we decided to continue trading while actively seeking expressions of interest or recapitalisation proposals from potential buyers. This approach aimed to preserve the value of the business and provide potential options for its future.
• Engaging with interested parties: We proactively engaged with a range of potential buyers and recapitalisation partners both domestically and internationally. This involved conducting negotiations and due diligence processes to assess their suitability and alignment with the group's objectives.
• Funding agreement with secured creditor. We negotiated and implemented a funding agreement with the major secured creditor, ensuring critical funding throughout the administration period. This financial support was essential to sustain operations and facilitate the ongoing trading of the business.
• Undertaking a significant CAPEX program: With the support of the secured creditor, we embarked on a substantial capital expenditure program to maintain the viability of the mining operation. This involved completing scheduled CAPEX projects, enhancing operational efficiency, and maximising returns to creditors through the restructuring process.
• Collaborating with mining authorities and insurers: We maintained close collaboration with mining authorities and insurance providers to ensure the highest standards of safety and risk management. By implementing robust safety protocols and maintaining a strong focus on compliance, we aimed to prevent major incidents and protect the well-being of employees.

Through the successful execution of this strategy, we aimed to safeguard the value of the Adaman Resources Group, explore potential opportunities for its future, and ensure the safe and efficient continuation of mining operations during the voluntary administration period.

After extensive analysis of the proposals received, we implemented a combined deed of company arrangement (DOCA) and creditors trust, which allowed the Adaman Resources Group to continue its operations. This outcome not only ensured the preservation of 77 jobs but also delivered a substantial return to all creditors involved.

By restructuring and recapitalising the group, we enabled it to continue making valuable contributions to the local economy of Mount Magnet, as well as the broader gold production industries in Western Australia and Australia as a whole. This outcome was significant in terms of sustaining employment, supporting economic growth within the region, and maintaining the group's role within the mining sector.

The opportunity to manage and deliver a successful outcome for the Adaman Resources Group reinforces Cor Cordis' expertise in large and complex mining and resources matters. This appointment adds to our track record of effectively leading businesses out of financial difficulties, showcasing our capabilities in navigating challenging situations and achieving favourable outcomes for all stakeholders involved.

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Acknowledgements

We would like to extend our thanks and acknowledgement to the following advisors who played a pivotal role in the achievement of this outcome:

• Gilbert + Tobin
• Arnold Bloch Leibler
• Pragma Lawyers
• SRK Consulting