True North Copper - Case Update

In a true insolvency success story, True North Copper has recommenced trading on the ASX after exiting voluntary administration.

The Cairns, Queensland-headquartered mining company and various subsidiaries entered voluntary administration on 21 October after a period of extensive negotiations with the company's debt provider, largest shareholder and other potential equity providers.

The timing of the appointment was unfortunate, as significant progress had been made on the company’s two main projects — Cloncurry and Mt Oxide — both located in north-west Queensland. Mining activities at Wallace North, part of the Cloncurry Copper Project, were ramping up on schedule, while recent exploration at Mt Oxide had identified a number of highly prospective targets for drilling with a high probability of making more discoveries. However, with cash resources running down and no prospects of being able to draw on existing facilities or raise additional equity or debt before the annual general meeting, the directors appointed Richard Tucker and Tony Miskiewicz of KordaMentha as voluntary administrators.

On their appointment, the administrators conducted a dual track recapitalisation and sale process for the group, resulting in a $50.9 million conditional placement which was partly underwritten by Canaccord Genuity and Morgans Financial. The placement contemplated the issuance of approximately 10.06 billion shares at $0.005 per share and included a $300,000 drill-for-equity arrangement with Mitchell Services. The placement was approved by creditors in November 2024, and then by shareholders at the annual general meeting on 23 December, and was completed on 31 December. True North Copper recommenced trading on the ASX on 13 January 2025 with a restructured balance sheet, putting it on more secure footing to move into the future.

The company has also revamped its board and leadership team, with appointments including Paul Cronin, the co-founder of Adriatic Metals (ASX:ADT), as Non-Executive Chairman.

Read the latest update here.