PERTH (miningweekly.com) – The creditors of ASX-listed Gascoyne Resources have approved a deed of company arrangement (DOCA) as part of a broader recapitalisation and relisting plan for the gold miner.
The DOCA and associated recapitalization and relisting plan was formulated with the objective of Gascoyne continuing to operate under its current group structure, with the DOCA intended to allow all unsecured creditors to receive up to 100c on the dollar in respect of their pre-appointment claims.
The administrators had recommended the DOCA after a significant operational turnaround achieved at Gascoyne over the past 12 months, which has seen the miner reach its fifth consecutive month of more than 6 000 oz of gold produced, showing higher grades at the Dalgaranga mine, in Western Australia.
The administrators previously said that the increased gold recovery was made possible by the decision to reinvest some A$10-million of cash flow into an accelerated cut-back of the Western Wall of the main Gilbey’s pit, starting in October last year.
The administrators on Friday said that the company would now proceed to enter into the DOCA and would issue the necessary documents in the coming weeks.