Gascoyne administrators consider company sale

The Dalgaranga site. Image: Gascoyne Resources

The administrators of Gascoyne Resources are mulling over the future of the company, with its sale as an alternative.

Administrators from FTI Consulting is weighing the options of a company sale and the recapitalisation of the company or its assets.

FTI said it was well into this evaluation process.

The administrators are in discussion with the Australian Securities Exchange (ASX) about Gascoyne’s potential reinstatement to trading, should it achieve recapitalisation.

“There are currently a number of actions underway by the administrators to maximise the future value of Gascoyne,” FTI Consulting stated.

“This is principally being affected through a dual track process to effect either a sale or recapitalisation of the company or its assets.”

As this process continues, administrators have requested extra time to complete its 2019 annual general meeting (AGM), which required an extension of its Australian Industry Skills Committee (AISC) grant.

This request was granted by the Supreme Court of Western Australia, which allows Gascoyne to hold its AGM on February 29 next year, closer to its second creditors meeting.

Gascoyne must also complete and lodge its annual accounts for the last financial year by January 31 2020.

The company decided to go into administration in June due to lower predicted grades of ore for the remainder of 2019, but continued Dalgaranga operations on a “break even or better basis” with the support of FTI Consulting.

This decision has paid off as Gascoyne recovered a record 6561 ounces of gold in Western Australia’s Murchison region during the June quarter.

FTI Consulting will provide further updates on the administration process after the AGM.

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