Long-running efforts by Michael Fotios’ investment company Investmet to revive Swan Gold Mining and related companies Stirling Resources and Redbank Copper have hit a major hurdle.
The complex restructuring involved a series of share placements and debt-for-equity swaps involving Stirling’s major shareholder, European commodities trader DCM DECOmetal, and several other entities.
The restructuring plan has hit a problem because the ASX has concluded that, based on the terms of the restructure deed, Stirling will need to re-comply with the full ASX admission criteria.
Stirling and Redbank chairman Martin Depisch said that, based on this advice, it has been agreed by all parties to the transaction that Stirling will not be able to participate.
As a result, Investmet nominees Michael Fotios, Peter Farris and Damian Delaney have resigned from the Stirling board.
The company statements added that DCM and Investmet “are negotiating in good faith to secure the restructure and recapitalisation of Redbank and Swan Gold Mining”.
The restructuring proposal was originally announced on 22 May.
Stirling has been a major shareholder in Swan Gold (formerly Monarch Gold Mining Co) since 2010, when it was run by Michael Kiernan.
Swan Gold’s major assets are the Carnegie and Mt Ida gold projects.
