True North Copper has a new plan to stabilise its capital structure, with administrators KordaMentha announcing a deed of company arrangement (DOCA).
The DOCA involves recapitalising the company through an equity raising of $50–60 million and follows the company announcing the appointment of voluntary administrators in October.
“The weight of creditor support for the equity recapitalisation is testament to the quality asset portfolio and means that the sale process has been parked to allow time for the equity raise to complete which is targeting completion before the new year,” KordaMentha’s Richard Tucker said.
“We are excited to work towards finalisation of the transaction.”
The DOCA is intended to comprise a conditional placement to sophisticated, professional and experienced investors to raise a minimum of $50 million before costs and a maximum of $60 million before costs.
True North is also providing an opportunity for eligible shareholders to participate in a share purchase plan to raise up to $5 million.
Proceeds from the placement are set to be used to discharge most of the unsecured debt of the group and provide funding for a revised business strategy.
Successful implementation of the plan will see True North emerge from a DOCA and enable it, once approved, to recommence trading on the ASX.
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