Capital Mining has finally been handed over to the administrators
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Capital Mining, the WA explorer that twice tried cannabis and considered buying cloud-based learning software, has filed for voluntary administration.
It has appointed Richard Albarran, Brent Kijurina and Cameron Shaw from Hall Chadwick Chartered Accountants to manage the business.
Capital Mining (ASX:CMY) was a gold and rare earths explorer until about September 2014, when it began making a rather diverse range of investments.
It tried and failed to buy buy 10 per cent of Chinese cloud-learning platform HexStudy for $5.7 million in 2014.
It then tried (and again failed) to buy a Canadian cannabis grower, a US hemp company, and finally, Tasmanian business Cannabinoid Extracts Australia.
They shelved those ideas in 2015 only for them to return last year — but not before they ran into trouble with the ASX over directors fees.
Perth-based Capital spent only $175,000 on exploration while $637,000 was paid for administration and corporate costs, according to its June quarterly report.
Directors Peter Dykes, Peter Torney and Anthony Dunlop were paid consultancy fees totalling $360,000, $480,000 and $120,000 respectively a year.
Mr Dykes and Mr Dunlop were also directors of Chapmans (ASX:CHP) which was planning on investing in — not a mining venture — but cannabis.
Capital had set up Capital Cannabis, its new marijuana arm.
In May “Capital also met with a number of other medicinal cannabis companies in North America in relation to potential investment opportunities for Capital subsidiary company, Capital Cannabis, in the medicinal cannabis sector,” the company said.
But that too fell over, with the company putting a full stop to its cannabis aspirations in December.
After issuing a 21-page quarterly activities and cash flow report in April, where it said it had given up six of 13 WA exploration licences for nil consideration, and waving goodbye to Mr Torney and chairman Robert Crossman in the last two weeks, the heart has finally stopped beating.
Capital Mining still likely has part of the $375,000 in cash remaining at the end of March.
As its shares have not traded for 12 months, shareholders are posting irate messages on internet forums this morning.