The required number of GBG’s unit Southgold creditors have voted in favor of the proposed arrangement for the GBG suspended Burnstone gold operation, the company said in a statement.
Having obtained the nod from the creditors, the miner is intending to progress towards finalization of definitive transaction agreements.
Wits Gold will also facilitate a $100m shareholder loan at 4% interest rate that can be paid back on a preferential basis from Southgold’s operating cash flow.
The cash proceeds are expected to repay Southgold Exploration’s debt that was reduced by 55% following restructuring to $177.35m. Having secured $7.25m from Wits Gold, the company is looking to repay remaining $170.1m from generated actual cash flow.
