Golden Heart mine. Photo courtesy goldenbandresources.com
It seems as though a former La Ronge gold production company will either sell off its assets, or be forced to accept an offer put forward by its biggest lender.
Golden Band Resources issued a news release this month saying it will start seeking buyers for its assets and market shares.
Golden Band’s creditor Procon Resources has offered a minimum bid of $19.6 million, which is the exact amount that is owed.
If no other companies step up with offers by the end of June, Golden Band’s assets and possibly shares could be taken over by Procon.
No matter which offer ends up taking over Golden Band, all takeovers must be court approved.
All of this action started after Procon Resources announced plans to put Golden Band into receivership so that it could recoup $19.6 million. Golden Band has taken time to come up with a restructuring plan, which the recent release states, does not involve maintaining ownership of its assets or stock.
Last week, Golden Band has a further 45 days to receive offers from potential buyers.