Bidders for ASX-listed Wiluna Mining, which ran out of cash and fell into FTI Consulting’s care in July, have got a bit more time to get their head around the beleaguered WA gold play.
Wiluna’s told suitors it could produce 200,000 ounces of gold a year, which would be nearly double of the 110,000 to 120,000 ounces that it was targeting by end of the year before it ran out of money. Louie Douvis
Street Talk understands sellside adviser Amicaa granted the extension to allow suitors to chew over updated modelling on new processing plants and larger open-pit operations, which was added to the data room this week. Upping processing capacity was a key point in Wiluna’s pitch to its potential new owners.
Amicaa’s now calling for first round of bids in mid-to-late October, with exact dates to follow. The initial plan was to have indicative bids in by late September and the process wrapped up by Christmas.
It’s open to offers to buy some or all of the company’s assets or to recapitalise it via a mix of debt, equity or hybrids.
Wiluna ran into trouble as increasing costs, production shortfalls and ramp-up issues depleted working capital and put stress on its obligations to lenders. By the time FTI came knocking its market value was $74 million, down from $233 million in January.
It owes lenders $77 million, of which about $57 million was to secured creditor Mercuria, an international commodity trading business. Its assets included $4.8 million cash excluding bank guarantees and 3075 wet metric tonnes of gold concentrate.
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