Page 6 - pd285-Aug20-mag-web_Neat

neWs

Gascoyne prepares for re-entry ascoyne prepares for re-entry
G

amid golden timesmid golden times
a

he surge in the gold price is benefit- its Davyhurst gold mine in January 2021. Gascoyne management now has until
Tting struggling miners as well as am- Meanwhile, Gascoyne Resources Ltd September 12 to recapitalise and relist
bitious explorers. will launch its own capital raising this the company on the ASX. Shareholders
While juniors took most of the market month after finalising a deed of company will vote on the DOCA on August 5. A
headlines in June and July with a se- arrangement (DOCA) which should allow positive outcome there will pave the way
ries of share price climbs on the back of the company to come out of administra- for Gascoyne to launch a capital raising,
exceptional exploration success and a tion after 14 months and restart trading believed to be around $75-80 million.
buoyant gold price, the last two months on the ASX. Gascoyne chief executive Richard Hay
have also seen three junior miners begin On July 2, Gascoyne announced that told Paydirt that after 14 months in ad-
their long-awaited resurrection stories. senior lenders had approved the DOCA, ministration, the path forward for both
In July, Ora Banda Mining Ltd (formerly joining other creditors in a plan which will company and creditors was clear.
Eastern Goldfields) announced plans to see all creditors receive close to 100c in “Creditors receiving close to 100c in
raise $55 million via a $40 million place- the dollar. Gascoyne went into adminis- the dollar, that is pretty much unheralded
ment and $15 million entitlement offer as tration in June 2019 with debts of more for a company in administration,” Hay
it rolls out plans to restart operations at than $120 million. said. “The major lends will come out of

Out of the woods

A strong gold price and increased investor appetite for gold equities is providing troubled miners with opportunities
to restart operations.

Gascoyne Resources Ltd: Ora Banda Mining Ltd:
Creditors accepted a deed of company arrangement from A $55 million placement and entitlement offer was launched in July.
administrator FTI Consulting in July, paving the way for a $75- Proceeds will be used to fund a DFS into the restart of the Davyhurst
80 million recapitalisation and relisting plan. The company’s operations and exploration activity in the Eastern Goldfields
Dalgaranga mine produced 73,116oz gold in FY2020
Dacian Gold Ltd:
Wiluna Mining Corp:
Undertook a $98 million capital raising in April to restructure its
Raised $52 million in April to fund its two-stage growth strategy at balance sheet ($50 million for partial debt repayment) and fund its
the Wiluna gold centre. Arranged gold concentrate offtake terms new three-year production outlook ($30 million for pre-stripping
with Trafigura and Polymetal and finalised a $21 million (rising to $61 and exploration). The company missed June quarter guidance
million) gold swap financing facility. The company now has plans to due to slower open pit mining rates and “geological variations” at
produce 200,000 ozpa from Wiluna the upper boundary of the Cornwall Shear Zone at Heffernans. It
revised its FY2021 guidance down, citing the early cessation of
mining at the Westralia pit
Page 6 aUgUST 2020 aUSTRaLIa’S PaYDIRT