Stay of execution for Eastern Goldfields

IMPERILED Eastern Goldfields has managed to loosen the noose around its neck, with executive chairman Michael Fotios convincing Investec to hold fire on any action following EGS’ failure to make a A$5 million plus debt repayment on August 1.

Stay of execution for Eastern Goldfields Stay of execution for Eastern Goldfields Stay of execution for Eastern Goldfields Stay of execution for Eastern Goldfields Stay of execution for Eastern Goldfields

Eastern Goldfields is looking to be saved from the grave.

The company, whose website promises "a bright future", looks again likely to deliver investors anything but, however it has managed to convinced its syndicated facilities lender to hold fire - briefly.
 
A standstill agreement has been extended until August 15, however by tomorrow the cash-strapped miner needs to deliver a capital plan to Investec.
 
It then needs to make a full repayment by September 12 and close out all hedging contracts with Investec to help repay its debts.
 
EGS owes about $10 million of the total $20 million Investec facility, while it is also in debt to Fotios' Investmet to the tune of $8 million. 
 
The company has warned that if it can't...

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