True North shores up funding for fresh start

True North Copper has successfully completed a fully underwritten $50.3 million placement as it claws back from administration with a recapitalisation plan. Meanwhile, its revised business strategy will see a pause on mining and processing at its Cloncurry operations, while the company focuses on exploration and evaluation activities. True North’s directors appointed Richard Tucker and Tony Miskiewicz of KordaMentha as voluntary administrators to the group last month, and a meeting of creditors last week backed a Deed of Company Arrangement for the recapitalisation of the group. True North reported that the $50.3 million placement drew strong support from key stakeholders including its processing partner Glencore Australia, which now holds a 9.9 per cent share in the company. It also saw Tembo Capital chip in $15 million and Regal Partners $6 million, while drilling firm Mitchell Services has a $300,000 drill-for-equity arrangement. Nebari, the company’s secured lender, has agreed to convert part of its outstanding debt into shares. Paul Cronin, co-founder and previous managing director of Adriatic Metals, is proposed to be appointed as non-executive chairman following completion of the recapitalisation and has committed $500,000. Bevan Jones is set to remain managing director and has committed to participate for $100,000 in the conditional placement. In addition to the conditional placement, the company intends to offer eligible existing shareholders the opportunity to participate in a share purchase plan to raise up to $5 million more. The company’s assets include the Cloncurry Copper Project 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 successful completion of the fully underwritten $50.3 million conditional placement to recapitalise True North is a great outcome and a testament to the strength of the company’s outlook and highly prospective portfolio of copper assets," Mr Jones said. "With a strong cash position, zero debt and a new experienced board and leadership team, we now have the opportunity to refocus our strategy and explore growth opportunities. "The new True North strategy is to pause, drill and optimise our existing highly prospective lease package. "The recapitalisation process has given us the opportunity to revise the company’s direction and set it on a revitalised path. True North Copper managing director Bevan Jones. "We have recently completed extensive surface mapping at Mount Oxide including rock chip sampling and a very successful GIS IP survey. "We have found that there are previously unknown, multiple mineralised zones that point to a district-size mineral system much bigger than just the Vero deposit. "At Cloncurry, we have paused mining and have moved into a low-cost base while we rethink the original, small-scale starter pit strategy. "Surface exploration has identified multiple new targets at our Cloncurry Copper Project. Geophysical surveys have produced potential mine-scale-changing targets within our current mining leases. "Exploration around our Wallace North lease package has also led to potential underground extensions to the ore body. "We look forward to undertaking our extensive drilling programs at Cloncurry and Mount Oxide, commencing in Q1 2025. True North is entering into an exciting exploration phase focused on the growth of our two most prospective regions.” You may also like: https://industryqld.com.au/chinova-resources-moves-on-from-receivership/

True North shores up funding for fresh start

Industry Queensland

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