Eastern Goldfields shows signs of life after near-death experience
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Embattled gold miner Eastern Goldfields is resurrecting itself after a horror run — with a capital raising at an advanced stage ahead of an ASX reinstatement.
Eastern (ASX:EGS), which had only $13,000 in the bank at June 30, has enlisted a New York-based corporate advisor to raise funds needed for a production ramp-up at its Davyhurst mine.
The company, which has been suspended from trading since August, is also in talks with the ASX to get reinstated.
Eastern also expects up to $6 million from its research and development (R&D) rebate claims over the last four years and has received $2.8 million in diesel fuel and GST rebates.
Gold sales since mid-August came in at $1.7 million from 1056 ounces at an average $1640 per ounce.
The company has also narrowed a shortlist of potential Chief Executive Officer and Chief Operating Officer candidates with an appointment expected next month.
Eastern had a horror run a couple of months back when it was threatened with a protest by disgruntled contractors at the Diggers & Dealers conference in Kalgoorlie in August.
This was followed by the Supreme Court ordering Eastern Goldfields be wound up and a liquidator appointed after mineral tester Genalysis Laboratory Services lodged a wind-up application after going unpaid for work at Davyhurst.
Eastern expects to release its full year results on October 20. Pitcher Partners have been appointed to assist with the financial reporting and provide advice on R&D rebate claims and tax.
Prior to being suspended, the company was trading at 23.5c, capitalising the company at $132 million.