West Perth-based Minemakers has given BCD Resources, the owners of Tasmania's Beaconsfield gold mine, an extra 48 hours to find new funding so it can continue to operate.
Last month, Minemakers agreed to loan BCD $15 million which allowed BCD to fend off receivership.
But last week, Minemakers issued a statement to the Australian Securities Exchange stating that it had loaned the troubled mining company $8.5 million but was unwilling to advance any further moneys.
Minemakers expressed disquiet that an acceptable restructure had not been achieved.
The company set a deadline of 5pm yesterday for BCD to put in place a restructure plan.
"BCD has also advised that it has received letters of commitment from several parties prepared to advance moneys to BCD," Minemakers said in a statement to the ASX today.
See today's statement to ASX below:
Following our previous announcement of 11 November 2010, Minemakers Limited (ASX:MAK) ("Minemakers") and BCD Resources NL (ASX:BCD) ("BCD") have continued discussions regarding a possible restructure of the arrangements under the Loan Agreement between Minemakers' wholly-owned subsidiary, Minemakers (Gold) Pty Ltd ("MGPL"), as lender and BCD as borrower.
BCD has also advised that it has received letters of commitment from several parties prepared to advance moneys to BCD.
In the circumstances, Minemakers has agreed with BCD to a 48 hour standstill arrangement. During this period MGPL will not exercise any rights under its loan agreement or first ranking security with BCD whilst all parties will endeavour to finalise arrangements which will result in BCD being able to secure new funding sufficient to allow it to continue its operations.
All MGPL's rights are preserved pending expiry of the standstill period should new arrangements not be satisfactorily finalised.
