The controlling shareholders of Thistle Mining (TMG-L), which are also the company’s major shareholders, have given notice to Thistle to pay up on debt due at the beginning of April.
Thistle owes the creditors, MC Resources and Casten Holdings, US$24.7 million on April 1, with about equal amounts due to each. MC and Casten served notice that they would not defer the payment date.
Failure to pay on Thistle’s part would constitute a default, with MC and Casten entitled to take over assets. The significant asset in Thistle’s treasury is a 41-million-share holding in CGA Mining (CGA-T, CGX-A), which acquired Thistle’s Masbate gold project in the Philippines in March. Thistle also received US$29 million in cash, about US$26 million of which went to pay the creditors on March 20.
Thistle’s total indebtedness to the two companies is around US$52 million.
Independent directors of Thistle are negotiating with MC and Casten, which each own 35% interests in Thistle, to restructure the debt. In the meantime Thistle shares have been suspended from trading on the London Stock Exchange’s Alternative Investment Market.
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