St0ckhead on Gascoyne : [here] Gold: Administrators have a plan...

St0ckhead on Gascoyne :
[here]

Gold: Administrators have a plan to re-list failed gold miner Gascoyne
Mining
3 hours ago | Bevis Yeo



Gascoyne Resources (ASX:GCY) could resume trading on the ASX after administrators recommended that unsecured creditors approve a deed of company arrangement (DOCA) as part of a broader recapitalisation and re-listing plan.
Gascoyne, which only poured first gold from the Dalgaranga mine in mid-2018, struggled with lower-than-expected grades before going into administration in June the following year.
The recommendation comes after the company achieved a significant operational turnaround at the flagship mine, reaching a fifth consecutive month of producing more than 6,000 ounces of gold.
This reflects the higher grades accessed from the Gilbey’s Main Zone and was made possible by the administrators’ decision to reinvest about $10m of cash flow into an accelerated cutback of the western wall of the main Gilbey’s pit from October 2019.
Recapitalisation is currently expected to involve an entitlement offer and placement of new shares to raise between $70m and $80m. This will be used to help repay secured debt owed to the current funding banks in full.
Gascoyne’s mining contractor, NRW, has also agreed to restructure its secured debt subject to the successful completion of the recapitalisation plan.