Straits Resources to exit WA market

Straits Resources says it will close its Perth office and relocate to Brisbane by the end of the month as it undertakes a significant downsizing and corporate restructuring.

Straits said today it would focus its attention solely on copper assets located predominantly on the east coast of Australia in the wake of a decision in August to place its Mt Muro gold mine in Indonesia on care and maintenance and seek a buyer for the project.

The company's new office in Brisbane will be home to just eight staff from a team of 50 previously.

Straits Resources deputy chief executive Scott Huffadine, deputy chief financial officer Matthew Smith and general manager exploration Ivan Jerkovic, are among the senior staff who will leave the company.

Straits will now look to close out a debt facility between its wholly owned subsidiary PT Indo Muro Kincana and senior lender Credit Suisse. 

Subject to shareholder approval, the company will provide Credit Suisse with a cash repayment of $US7.5 million and issue $US3.75 million in short dated convertible notes at 3 cents per share.

Straits achieved record production at its Tritton copper mine in New South Wales for the September quarter and says its turnaround strategy is gaining traction.

The company's shares were unchanged at the close of trade at 0.8 cents.