Creditors approve Gascoyne DOCA

The creditors of Gascoyne Resources have approved a deed of company arrangement (DOCA) recommended by its administrators, ahead of two competing late proposals.

The DOCA is part of a broader recapitalisation plan that aims to relist Gascoyne on the ASX, and was outlined in a report to creditors earlier this month.

Improvements were made to the DOCA yesterday, including an increased upfront debt repayment to Gascoyne’s mining contractor NRW Holdings, from $4 million to $7 million.

The amount represents 8.75 per cent of the total proceeds raised from a planned equity raising, as part of the recapitalisation, which NRW has accepted.

Gascoyne’s additional debts will be repaid over time from its mining operations.

The company’s administrators FTI Consulting said the DOCA was approved by a majority of Gascoyne’s creditors at a second meeting, held yesterday.

Creditors had been asked to vote on adjournment of the meeting to July 10 to allow further time to develop a late proposal from China-based Hanking Gold Mining, and potentially a late proposal from Habrok Mining, received on Wednesday.

A resolution for the adjournment was not passed by creditors.

FTI said “the competitive tension generated from competing proposals had ultimately generated a better return for unsecured creditors”.

Gascoyne will now proceed to enter into the DOCA, the administrators said.

All necessary documents will be issued in the coming weeks to progress the recapitalisation plan.