Struggling gold miner Eastern Goldfields finally calls in the administrators
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The directors of struggling gold miner Eastern Goldfields have appointed administrators after a $75 million recapitalisation deal fell through.
Eastern Goldfields (ASX:EGS) directors will work with administrators to review the company’s operations (which are currently in care and maintenance).
They will also work with company’s stakeholders “to formulate potential strategies to preserve and restructure the company and its underlying operations”.
The immediate priority is to explore the opportunity to restructure the company and its subsidiaries in the short term, the administrators told investors.
While in administration the company’s shares will remain suspended.
Updates will be provided via the ASX in due course, the administrators said.
The gold miner has been in trouble for some time, last year facing difficulties in paying contractors.
One contractor even tried to have Eastern Goldfields wound up and a liquidator appointed, but the Supreme Court of Western Australia came to its rescue after the company said it paid the contractor on the day the court heard the wind up application.
Stockhead is seeking comment from the administrators.