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Highlights
- True North Copper is set to relist on the ASX before Christmas following a successful equity recapitalisation.
- The recapitalisation will help restructure the company, repay debt, and establish a new direction for growth.
- True North’s assets include the Cloncurry and Mt Oxide copper-gold projects, both offering significant development potential.
True North Copper (ASX:TNC) is poised to resume trading on the Australian Securities Exchange (ASX) before the Christmas holiday, after administrators KordaMentha announced that an equity recapitalisation will replace the previously proposed sale process. This follows the company’s entry into voluntary administration on October 21, 2024, under the guidance of administrators Richard Tucker and Tony Miskiewicz.
True North, which operates key assets in Queensland, including the 'mine-ready' Cloncurry copper-gold project and the high-grade Cu-Ag-Co Mt Oxide project, will raise capital through a recapitalisation plan, facilitated by Canaccord Genuity (Australia) and Morgans Corporate. The capital raise is designed to restructure the company’s financial obligations, repay its debt and creditors, and position the company for future growth.
Once completed, the recapitalisation will leave True North with a new board of directors and no outstanding debt, setting the stage for a fresh chapter as it relists on the ASX.
Restructuring and Growth Potential
Administrator Richard Tucker emphasized that the decision to pursue a capital raise was based on the strong underlying value of True North’s projects. The Cloncurry and Mt Oxide projects both offer substantial development and exploration potential, making the company an attractive proposition for investors. The recapitalisation will provide the necessary funds to push these projects forward, allowing True North to capitalize on the growth opportunities in the copper and gold markets.
Background on Administration
True North Copper entered voluntary administration after extensive negotiations with its debt provider, Nebari Natural Resources Credit Fund II, and its largest shareholder, Tembo Capital Holdings UK. Disagreements over funding to satisfy conditions related to Nebari’s debt facility led to the company’s decision to enter administration.
Notably, the decision to appoint KordaMentha came following a significant increase in the company’s stake by Regal Funds Management, a major Australian resources investor. Regal had raised its stake to 14.07% in June 2024 by acquiring an additional 53.6 million shares for $3 million, further bolstering the company’s prospects as it moves forward with the recapitalisation plan.
