Eastern Goldfields into administration

Eastern Goldfields has been placed into administration, a day after announcing its proposed $75 million recapitalisation plan had fallen through.

The company’s directors appointed Martin Jones and Andrew Smith of Ferrier Hodgson as joint administrators today.

In a statement to the ASX, Ferrier Hodgson said its immediate priority was to explore the opportunity to restructure Eastern Goldfields and its subsidiaries in the short term.  

“The administrators are working with the directors in reviewing the companies’ operations (which are currently the subject of care and maintenance) and financial position, including conferral with the companies’ stakeholders to formulate potential strategies to preserve and restructure the companies and its underlying operations,” the statement said.  

Under the proposed recapitalisation plan, Adaman Resources was to provide up to $17.5 million of in-kind services to support short-term capital requirements at Eastern Goldfield’s Davyhurst project.

It suspended operations at Davyhurst project in early September.

US investor Hawke’s Point Holdings was also set to take a major stake in the gold miner, which was to be renamed to Eris Gold.

Eastern Goldfields was founded by Michael Fotios, who resigned as the company’s executive chairman in late August and was succeeded by Peter Mansell.

Shares in Eastern have been suspended since July 23 while it searched for a funding deal.

Ferrier Hodgson said shares in the company would remain suspended while in administration and its 2018 annual general meeting would be cancelled.