Eastern asks DMP to withdraw bond request

Recently revived Eastern Goldfields has called on the Department of Mines and Petroleum to withdraw a request for $8.6 million of performance bonds.

The Michael G Fotios-chaired company said today it had recently received notification from the DMP that one of its wholly-owned subsidiaries would be required to lodge securities with the DMP in the form of unconditional performance bonds totalling $8.6 million by mid-March.

It said that, given the change in the company’s circumstances since the initial bond request, including completing a $25 million capital raising and being reinstated on the ASX after eight years of inactivity, there were good grounds for recently appointed Mines and Petroleum Minister Sean L’Estrange to withdraw the request for the bonds.

“The company has been engaged in correspondence and meetings with the DMP regarding the bonds with a view to having the request withdrawn,” Eastern said in a statement.

Eastern ended eight years of suspension on the ASX last month after completing an oversubscribed capital raising in late February.

The company is targeting recommencement of gold production at its Davyhurst project.

Eastern shares were unchanged at 19.5 cents each at the close of trade.