Creditors back True North recapitalisation plan

A meeting of True North Copper creditors has backed a Deed of Company Arrangement for the recapitalisation of the group. It will see the company undertaking an equity raising to drum up at least $50 million, and up to $60 million (before costs). True North’s directors appointed Richard Tucker and Tony Miskiewicz of KordaMentha as voluntary administrators to the group last month. The administration covers the entities True North Copper Limited, TNC Mining Pty Ltd, CopperCorp Pty Ltd, North West Copper Pty Ltd and TNC Asset Holding Pty Ltd. "The weight of creditor support for the equity recapitalisation is testament to the quality asset portfolio and means that the sale process has been parked to allow time for the equity raise to complete which is targeting completion before the new year," Mr Tucker said. "We are excited to work towards finalisation of the transaction." Related: Recapitalisation plan to revive True North Copper The company's assets include the Cloncurry Copper Project (location map at top of page) where it operates an SX plant at the Great Australia complex and had started mining at the Wallace North pit shortly before the administration. It also holds the high-grade copper-silver-cobalt Mount Oxide project. The equity raising is intended to comprise: A conditional placement to sophisticated, professional and experienced investors to raise a minimum of $50 million before costs and a maximum of $60 million before costs. This placement will be conditional on shareholder approval In conjunction with the recapitalisation placement, the company is providing an opportunity for eligible shareholders to participate in a share purchase plan to raise up to $5 million (SPP). Proceeds will go towards discharging most of the group's unsecured debt as well as the claims of certain secured creditors and to provide funding for a revised business strategy. Under the revised strategy, True North Copper intends to pause operational ramp up and undertake an extensive exploration and resource development drilling campaign to grow reserves/resources, optimise and extend life of mine, while remaining mining ready, subject to a future restart decision. The Deed of Company Arrangement was put forward by Canaccord Genuity and Morgans Corporate, with Richard Tucker and Tony Miskiewicz of KordaMentha appointed as deed administrators. You may also like: https://industryqld.com.au/chinova-resources-moves-on-from-receivership/

Creditors back True North recapitalisation plan

Industry Queensland

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