Allegiance Mining

Allegiance Mining NL (ASX:AGM) is an Australian mining company listed on the Australian Securities Exchange on 29 October 1993.

Allegiance operated the Avebury nickel mine project on the west coast of Tasmania, Australia. Allegiance had an ongoing exploration effort targeting nickel sulphide deposits around the Avebury nickel project area and production was scheduled to start in 2008.

Avebury was a significant nickel sulphide discovery located 8 km west of Zeehan. The mineralisation is essentially remobilised nickel sulphide (pentlandite mineral) and is of simple metallurgy, producing some of the world's highest-grade nickel sulphide concentrate.[1][2]

On February 21, 2023, Allegiance Mining's U.S. division filed for Chapter 11 bankruptcy protection.[3] On February 15, 2024, debtor in possession lenders sued Allegiance Mining, stating the company has over $1.8 million in unpaid fees.[4]

Takeover Offer by Zinflex

On 17 December 2008, Allegiance received a bid from Ziniflex Australia Limited ("Ziniflex") at $0.90 cents per share (increased to $1.00 per share if the bid was successful). The Board initially rejected this bid, but on 22 February 2008, the Board recommended shareholders accept the increased offer of $1.10 per share, and accepted for all shares owned or controlled by Board members.[5][6]

In March 2008 the board of directors recommended to shareholders the sale of Allegiance Mining to Zinifex Limited for $1.10 per share.[7]

Avebury was then later owned by QCG Resources.[8]

References

1. Keays, Reid; Jowitt, Simon (2013), "The Avebury Ni deposit, Tasmania: a case study of an unconventional nickel deposit", Ore Geology Reviews, 52, Elsevier Science BV: 4, Bibcode:2013OGRv...52....4K, doi:10.1016/j.oregeorev.2012.07.001, retrieved 19 November 2018
2. Keays, Reid R; Jowitt, Simon M (2013), "The Avebury Ni deposit, Tasmania: A case study of an unconventional nickel deposit", Ore Geology Reviews, 52, Elsevier B.V (published 1 August 2013): 4–17, Bibcode:2013OGRv...52....4K, doi:10.1016/j.oregeorev.2012.07.001, ISSN 0169-1368
3. "Allegiance Coal USA files for Chapter 11 bankruptcy in Delaware". Bloomberg Law. 21 February 2023. Retrieved 22 February 2023.
4. "DIP Lenders Sue Allegiance Coal Over $1.8M In Unpaid Fees". Law360. 15 February 2024. Retrieved 22 March 2024.
5. "Allegiance Mining NL - Report for March 2008 Quarter" (PDF). ASX. Archived (PDF) from the original on 16 November 2020.
6. Regan, James (25 February 2008). "Allegiance Mining agrees sweeter $790 mln Zinifex bid". Reuters. Retrieved 15 November 2020.
7. "$852m Allegiance takeover offer accepted". The Sydney Morning Herald. 8 May 2008.
8. "Avebury". Archived from the original on 19 November 2018. Retrieved 28 August 2021.