London Mining is expected to announce it is going into administration today, after revealing at the end of last week that it was temporarily suspending trading on the Aim “pending clarification of the company’s financial position”.
A source told City A.M. that London Mining was in acquisition talks yesterday with Indian company JSW Steel, and said that the company would most likely go into administration while its primary asset, the Marampa mine in Sierra Leone, would pass into the hands of JSW.
A spokesman for London Mining declined to comment and JSW Steel could not be reached while a spokesman for Standard Chartered, London Mining’s biggest lender, also declined to comment.
The company stated on Friday that the only strategic investors still involved with the company were those whose proposals were “not expected to contemplate the continuation of London Mining Plc” as a going concern.
London Mining’s share price, which had been severely knocked earlier in the week, climbed to over 4p on Friday. In 2011 the company’s shares traded at over 400p.