New hope for Triton

A corporate finance firm and a private gold company have put forward competing proposals to recapitalise troubled graphite explorer Triton Minerals.

In a statement today, administrators Ferrier Hodgson said it had received a deed of company arrangement proposal from Somers & Partners and a recapitalisation deed proposal by Minjar Gold.

Somers & Partners has proposed a fully underwritten entitlements issue of 226.7 million shares at 6 cents each to raise about $13.6 million.

The firm has paid a $1 million deposit, $300,000 of which is non-refundable, and it expects to take up to four months to raise the funds.

If successful, Somers & Partners will have the right to nominate one director to Triton’s board, while all existing directors except for Garth Higgo and Paula Ferreira would resign.

The terms of the underwriting agreement have been agreed with the administrator.

Minjar, meanwhile, is offering a placement of 105.2 million shares at 8 cents each to raise $8.4 million, and following that it plans to conduct an entitlement offer at 4 cents each to raise a further $7 million.

Ferrier Hodgson said while Minjar’s proposal quoted a shorter timeframe for completion (of one-to-two months), it warned that it could actually take closer to six months to receive the funds.

“The terms of recapitalisation deed and the subsequent underwriting agreement (proposed by Minjar) have not been agreed by the administrators of the company,” the administrator said.