Diversified contractor NRW Holdings (ASX: NWH) has agreed to help underwrite Gascoyne Resources’ (ASX: GCY) $20.6 million entitlements issue, in a significant boost for the struggling Mid West gold producer. NRW is the mining contractor at Gascoyne’s Dalgaranga project and has agreed to sub-underwrite up to $5.3 million of the entitlements issue. In December, NRW provided Gascoyne with a $12 million loan facility, which is now to be repaid in the first half of next year. Gascoyne wants to raise $24.4 million from a $3.8 million placement and $20.6 million four-for-five entitlement issue, which is fully underwritten.
NRW Holdings Limited (ASX:NWH) (“NRW”) acknowledges the announcement by Gascoyne Resources Limited (ASX: ‘GCY’), regarding an equity raising of up to ~$24.4 million (before costs), comprising a ~$3.8 million placement and an underwritten ~$20.6 million entitlements issue.
NRW has agreed to sub-underwrite up to $5.3 million of the entitlements issue, with NRW’s participation to be applied to the trade receivable owing to NRW and to return the balance to contractual terms.
On 24 December 2018, NRW agreed to support Gascoyne through the provision of a $12 million loan facility which was to be repaid through instalments during the second half of calendar year 2019. In line with the Senior Lenders, NRW has agreed and been compensated to extend commencement of repayments by six months.
NRW continues to work closely with Gascoyne Resources on the Dalgaranga project to support operational priorities.
