After calling in administrators at the start of July, Calidus Resources’ future is close to being decided.
FTI Consulting has been driving the administration process and has now released its report to be used in a creditor meeting scheduled for September 27.
During the meeting, creditors may decide to liquidate Calidus or hand it back to the control of the directors if they find the company to be solvent.
Creditors will have much to consider, as the report highlights that there has been an interdependent set of ‘deed of company arrangement’ (DOCA) proposals from billionaire Mark Creasy-backed West Coast Gold.
West Coast landed a deal to acquire Calidus’ secured debt at the start of August, and will take control of Calidus should creditors accept the DOCA.
“Given only one DOCA proposal is currently capable of completion, in the report the administrators expressed that, in their opinion it would be in the creditors’ interests for the companies to execute the West Coast DOCA proposal on the terms proposed, as on balance,” FTI Consulting said.
“It is likely that creditors will receive a greater return under the West Coast DOCA proposals than they would if the companies were immediately wound up.”
As the administration process unfolds, Calidus’ Nullagine gold project remains in the wind after announcing a maiden mineral resource in June.
The Nullagine gold project is located in the Mosquito Creek Basin within the Archaean Pilbara Craton of Western Australia.
Calidus acquired Nullagine in December 2023 from Novo Resources. Calidus also acquired Novo’s Blue Spec gold-antimony project in 2020 and the remaining tenements at the Warrawoona gold project in 2021, both located in WA.
