Creditors and former employees should know this month whether a proposal to recapitalise and restart the Mount Carlton mine has solidified in the wake of the Navarre Minerals collapse.

A decision on whether to place the company into liquidation was imminent when, shortly before the most recent creditors’ meeting on July 24, an unnamed party requested time to pursue a deed of company arrangement (DOCA).

The proponent advised administrators that they were in negotiations with secured creditors Evolution and Glencore with a view to recapitalising the company.

The recapitalisation would involve proposing a DOCA, paying employee entitlements and restarting mining operations in the near term, Duncan Clubb from BDO told the meeting.

He adjourned the matter until August 25.

Navarre Minerals went into voluntary administration on June 19 and McGrathNicol Restructuring personnel were subsequently appointed as receivers and managers for one of its subsidiaries – Navarre Minerals Queensland.

Employees’ representative Gary Hivers said only about 14 workers remained at the site, which is on care and maintenance, compared to about 150 previously.

He said former employees’ entitlements would be covered by the Fair Entitlement Guarantee should they not be taken up by new owners under the potential proposal, which may see them delivered sooner.

Mr Hivers said he was awaiting the next meeting to see what became of the DOCA proposal, which would have to be agreed upon by the administrators, receivers and the two major creditors to go ahead.

Navarre acquired the Mount Carlton gold operation from Evolution Mining in late 2021 in a $90 million deal.

Located 150km south of Townsville, Mount Carlton has been operating continuously since 2013, producing about 1.0Moz of gold together with copper and silver by-products sourced mainly from the V2 open pit mine.

The operation includes the new Mount Carlton United (MCU) open pit mine, four satellite gold deposits and a 960ktpa processing plant producing polymetallic concentrate (gold, copper, silver) and gold doré.

Navarre Minerals receivers McGrathNicol Restructuring opened an expressions of interest sale campaign for the mine in July.

McGrathNicol partner Mark Holland said this week that the sale process was continuing, with non-binding indicative offers due by August 18.

“We’ll have a better view on a sale and/or any potential DOCA proposal after this time,” he said.