Resource Development Group Limited (ASX:RDG) et al. - Voluntary Administration

Resource Development Group Limited (ASX:RDG) (RDG) et al., a Western Australia-based mining company whose flagship project is the Lucky Bay garnet operation in Western Australia, entered voluntary administration on 28 July, with Jason Ireland, Rob Brauer and Linda Smith of McGrathNicol appointed as voluntary administrators.

RDG is managed by Andrew Ellison and has recently been funded by an interest-free line of credit of over $135 million provided by Mineral Resources Limited—a secured creditor and 64.31% shareholder of RDG which was founded by Andrew Ellison’s brother, Chris Ellison.

According to a press release by Mineral Resources, after reviewing its arrangements with RDG, Mineral Resources decided not to provide a cash advance requested by RDG to meet operating expenses, resulting in the decision by the RDG board to enter voluntary administration. Mineral Resources has offered to provide funding to the administrators until the second meeting.