Key points
- Matsa paid $22.8M to Blue Cap Mining but dispute continues
- BCM appointed KPMG as receivers and managers for Devon assets
- Matsa appointed KordaMentha as administrators for Devon Gold Pty Ltd
- Company increased loan facility to $37.5M with Deutsche Balaton Aktiengesellschaft
- New $4M loan facility to refinance existing loans
Full summary
Matsa Resources Ltd has announced a suspension of operations at its Devon Gold Project due to a dispute with Blue Cap Mining (BCM), the mining contractor. BCM suspended operations citing unpaid invoices and an accelerated payment demand, despite Matsa's payment of $22.8M. BCM subsequently appointed KPMG as receivers and managers for certain Devon assets, while Matsa appointed KordaMentha as administrators for Devon Gold Pty Ltd. Matsa disputes BCM's claims and will vigorously defend against them. Additionally, Matsa increased its secured debt facility with Deutsche Balaton Aktiengesellschaft to $37.5M and entered into a new $4M loan facility to refinance existing loans.
Guidance
Matsa increased its secured debt facility to $37.5M and has a new $4M loan facility.
Outlook
Matsa will continue to defend against BCM's claims and work on the operational review of the Devon Gold Project.