11/07/2011 - 13:25

Bass negotiating refinancing for Hellyer

11/07/2011 - 13:25

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Bass Metals has entered a trading halt pending completion of refinancing negotiations to support its plans for the development of the Hellyer gold mine in Tasmania.

Bass negotiating refinancing for Hellyer

Bass Metals has entered a trading halt pending completion of refinancing negotiations to support its plans for the development of the Hellyer gold mine in Tasmania.

The Perth-based miner said it was currently in advanced discussions with several parties to raise $25 million, primarilty through a convertible debt restructure.

Bass said it would apply the funds, subject to completion of the negotiations, towards upgrading mine services, exploration work to evaluate existing resources and generate new targets and provide a minimum buffer of two months' working capital.

Managing director Mike Rosenstreich said Bass needed to recapitalise to reposition itself from unforeseen technical issues revolving around water in-flow and ore grades.

"The newly updated operating plan appears robust and is anticipated to provide a strong platform from which to aggressively develop our existing assets and to rebuild shareholder value eroded over the past few months.

Bass said the suspension should last approximately three to four weeks.

Its stock last traded at 22 cents.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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