Exploration gears up at Onslow Copper Project
Tuesday, June 28th, 2022
GCX Metals will accelerate development of its gold and copper prospective Onslow Copper Gold Project, located in the Pilbara region of Western Australia, following re-instatement of the company’s shares on the ASX.
The formerly named Paringa Resources acquired the project in 2019 but filed for bankruptcy in 2020 after selling its US coal assets.
The company has entered into a deed of release with the secured lenders (the Tribeca Parties), whereby they will release Paringa from all obligations and liabilities as parent company guarantor to the group’s US$40 million term loan facility and related finance documents.
The lenders had entered into the agreement in return for 35 million shares and 20 million options on a post-share consolidation basis.
GCX said results of the exploration programs would determine the economic viability and potential timing for the commencement of additional technical studies, including studies that assess the economic viability of the project, and ultimately the commencement of mining operations.
As well, it would assess opportunities for business development and new venture activities to potentially add additional mineral projects, and consider joint venture arrangements in respect to the Onslow and other new mineral projects.
GCX directors consider that, based on the funds raised under the Prospectus, the company will have sufficient working capital to meet its stated objectives and satisfy its working capital requirements for a period of at least two years following the reinstatement of trading.
It confirmed there were no legal, regulatory, statutory or contractual impediments to the company undertaking exploration activities such that it will be able to spend its cash in accordance with the planned commitments.