A global firm is helping breathe new life into a struggling gold miner.
Squire Patton Boggs (SPB) is advising Easter Goldfields in its complex $80m recapitalisation plan. The global firm is also advising the company in the proposed reinstatement of its securities on the ASX.
“The deal has been more complex than most, and has involved extensive discussions and negotiations with interested stakeholders, including existing shareholders and lenders, incoming investors and trade creditors. We look forward to progressing the transaction and completing the recapitalisation so that EGS may execute its strategy of becoming a mid-tier gold producer,” SPB partner Simon Rear said.
Rear is supported by senior associate Michael Van Der Ende.
Eastern Goldfields, which is changing its name to Eris Gold, is bringing together new people through a revamped board and management team. It has also revised its strategy and has bolstered its balance sheet to execute the strategy. SPB said that the recapitalisation will provide the company with a fresh start and position it to join the ranks of successful Australian mid-tier gold producers.
The key parts of the complex recapitalisation include an $8.75m interim funding package from convertible notes and a $42.3m placement and entitlement offer. Adaman Resources will also provide in-kind mining services of at least $15m and up to $17.5m.
Eastern Goldfields will also convert virtually all of its syndicated facility agreement into equity. The company will also eliminate existing trade debts, including by converting some into equity.