Lenders to Ascot Resources (TSX: AOT) appear to be keeping the company on a short leash, with the company this morning revealing it has obtained credit waivers for certain defaulted debts. The waivers however are brief in natural, and are valid through to just October 31, 2024.
The defaults relate to the company earlier this month placing its Premier Gold Mine on care and maintenance as a result of delayed mine development. The company indicated that three to six months of time is required for further development of the Big Missouri and Premier Northern Lights mines in order to reach ore that is suitable to adequately feed the mill.
At the time, Ascot indicated that it will also require further funding to complete the necessary development.
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READ: Ascot Resources Crashes 66% After Placing Premier Gold Mine Into Care And Maintenance
In the interim, the company has managed to obtain waivers from Sprott Private Resource Streaming and Royalty, Nebari Gold Fund, Nebari Natural Resources Credit Fund II, and Nebari Collateral Agent through to October 31 in relation to several pre-existing defaults and potential future defaults.
Discussions are said to continue with secured creditors in relation to planned mine development and future operations.
Ascot Resources last traded at $0.18 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
