Creditor deal cuts Coxheath debt by 70%

Some of Coxheath Gold’s (TSE) creditors have agreed to convert Coxheath’s debt into shares of the company. At 17 cents per share, the conversion will be worth $1.99 million, reducing Coxheath’s unsecured debt by 70%. “Management is extremely pleased with this significant support and expression of confidence by the creditors,” said Coxheath President Michael Riddell. Over half of the shares will be purchased by insider creditors, including certain directors. Shareholders will be asked to approve the share issue at the company’s annual meeting.

Coxheath is currently negotiating for a joint venture to reopen the company’s Tangier gold mine in Nova Scotia. Several funding proposals have been received, the company said, and a decision on a joint venture will be made shortly. The Tangier mine was closed last year because the mill was recovering less than 20% of the contained gold.