Ann: Update Gascoyne Resources Limited, page-20

Australian Mining today on Gascoyne recap plans:... including when residual debt would be repaid!
https://www.australianmining.com.au/news/gascoyne-set-to-sign-doca-to-recapitalise-company/
Gascoyne to sign agreement to revive company

June 18, 2020 Salomae Haselgrove

Dalgaranga gold pour. Image: Gascoyne Resources

FTI Consulting administrators have recommended that Gascoyne Resources signs an agreement that will recapitalise and relist the struggling business.

Should Gascoyne be successful in the recapitalisation, its shares could return to trading on the Australian Securities Exchange (ASX).

This comes after a significant operational turnaround at Gascoyne during the past year, with the company having achieved its fifth consecutive month of producing more than 6000 ounces of gold from Gilbey’s main zone at the Dalgaranga mine in Western Australia.

The result was made possible by the voluntary administrators’ decision to reinvest $10 million of cash flow into an accelerated cutback of Gilbey’s western wall last October.

The objective of the proposed DOCA is to continue operating Gascoyne under its current group structure, allowing all unsecured creditors to receive up to 100 cents on the dollar, respective of pre-appointment claims.

To recapitalise Gascoyne, FTI expects a placement of new shares to raise $70 to $80 million.

Gascoyne’s contracting company NRW has also agreed to restructure its secured debt and to release all claims against the Gascoyne group regarding its pre-administration debt of around $32.7 million.
Under this agreement, the debt would be repaid with an upfront payment equal to 5 per cent of gross proceeds of the equity raising, a debt equity conversion equal to $12 million under the entitlement offer or a contingent payment equal to the $32.7 million.

The contingent amount would be payable quarterly, commencing in January 2021.

NRW has been working closely with FTI Consulting during the review process and remains focussed on performing its mining contract and supporting Gascoyne as it works towards recapitalisation.