Leading Australian resources and infrastructure contractor NRW Holdings (ASX: NWH) today provided an update on the agreements reached with Gascoyne Resources (ASX: GCY) following its successful recapitalisation process.
The key elements of our agreement are:
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Mining Contract – NRW has agreed binding terms with GCY for an extension of both Mining and Drill & Blast services for the full life of mine at the Dalgaranga Gold Project which increases the overall contract value by circa $180M.
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Recovery of all pre administration debts:
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NRW has received $7 million in cash as foreshadowed in the recapitalisation agreement, and;
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NRW received 24 million GCY shares (post consolidation) valued at $12 million at the issue price of the equity raising.
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A further $13.7 million will be paid linked to ounces produced and the gold price.
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NRW also exercised its rights as part of the Entitlement Offer and now holds in total 36.9 million shares in GCY (post consolidation) valued at $19.6 million based on the GCY closing price on the 21st October 2020.
Commenting on the work undertaken with Gascoyne and FTI as administrators Andrew Walsh NRW’s CFO noted,
“We have worked closely with the teams in both Gascoyne and FTI to support the recapitalisation plan recognising that a viable Dalgaranga project was critical to the success of that process. Output from the project has been consistently above 6,000 ounces a month for most of this year which has provided the basis for a great solution for both Gascoyne and NRW.
“Recent announcements on potential additional resources will provide opportunities for NRW to provide additional services beyond the current Life of Mine Plan.”
