Gold: It’s back – Eastern Goldfields is the miner that refuses to die
It appears Eastern Goldfields (ASX:EGS) could be back from the dead, again, this time with a fresh coat of paint.
Now it has a new name – Ora Banda Mining – and a refreshed boardroom, which includes chairman Peter Mansell, managing director David Quinlivan, and non-exec directors Mark Wheatley and Keith Jones.
But it’s not out of the woods yet — everything hinges on securing a $30m to $40m capital raising lifeline.
Eastern Goldfields, which owns the Davyhurst gold operation 120km north-west of Kalgoorlie, is confident it has “significant undertakings of support from existing shareholders”.
The company has made deals with creditors, who have agreed to extinguish their claims in exchange for cash payments or conversion to new equity.
And if the capital raise goes to plan, the company says it will be debt-free and with a strong cash position to execute its “back to basics” strategy.
“The company has now defined a pathway to undertake a Definitive Feasibility Study, which the board expects will provide a further trigger to unlocking additional value of the company’s assets,” it told investors.
“The company has always had a very promising portfolio of assets – attractive deposits with known high-grade resources, an existing processing plant, and a large and prospective land holding in a tier 1 gold mining jurisdiction – and it will now seek to maximise that value.”
But we’ve been here before, a few times.
Most recently in September last year, when Eastern Goldfields looked to have escaped administration after announcing a $75 million recapitalisation deal.
But problems go back to 2017, when GR Engineering Services kicked off legal action in the WA Supreme Court to recover outstanding payments relating to a $12.5 million Davyhurst gold project contract.
Cash-strapped Eastern Goldfields then managed to make multiple last-minute contractor payments to stave off liquidation, about the same time it completed its first gold pour at Davyhurst.
Canada-focused lithium and gold explorer Ardiden (ASX:ADV) has named Rob Longley as its new CEO.
Longley was most recently managing director of Helios Gold, but prior to that he was general manager geology for iron ore explorer Sundance Resources (ASX:SDL) between 2007 and 2015.
Oklo Resources (ASX:OKU) reckons its discovered a new 4km gold trend at its Kouroufing project, after shallow sampling returned high grade intersections like 6m at 7 grams per tonne, 7m from surface.
“These new shallow geochemical results highlight the potential for additional gold-bearing structures along favourable northeast and northwest trends, complementing the recent greenfields discovery within the main Kouroufing gold corridor which has already yielded a number of very significant gold intersections from AC drilling,” boss Simon Taylor says.
Oklo is planning follow-up drilling on a number of the higher priority targets.