Eastern Goldfields signals voluntary administration

The Davyhurst plant

Eastern Goldfields has announced that it may go into voluntary administration following the collapse of a $75 million recapitalisation.

The gold miner has proposed to adjourn its November 30 annual general meeting (AGM) until the end of January next year to allow its shareholders to consider the company’s financial statements.

The AGM was initially scheduled to approve resolutions that would initiate the $75 million recapitalisation, which Eastern Goldfields declared would no longer proceed now.

Eastern Goldfields said in an ASX statement that it was evaluating a number of alternative transactions, including voluntary administration, however “these [transactions] are not yet at a stage where the company is in a position to make an announcement.”

In July this year, Eastern Goldfields also asked to be placed into a trading halt while considering a few funding approaches and sources.

The same announcement saw the resignation of company chairman Michael Fotios, a management change which Eastern Goldfields claimed to be “in connection with the [said] recapitalisation fundraising.”

Eastern Goldfields has gone through a few bouts of financial difficulties in the past year, including contractual disputes arising from unsettled debts with Genalysis Laboratory Services and GR Engineering at the Davyhurst project – leading to a WA Supreme Court order for a company shutdown – and more recently with corporate lender Investec Australia.

The company was scheduled to issue its 2018 annual report to the public on November 23, but had not released it since.