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Beaconsfield Gold and Bendigo Mining Merger in Doubt

By Joel ScanlonOct 11 2010

Beaconsfield Gold and Bendigo Mining's merger is in doubt after a potential loan default has come to light. In July the companies had agreed to a potential merger which would reduce risks and enhance growth prospects for both companies.

The plan included Bendigo providing a pre-completion loan of $8 million of which it has advanced $5 million already taking a fixed and floating charge over the assets and undertakings of BCD and its subsidiaries. On October 6, 2010 Bendigo, which operates the Henty Gold Mine on the West Coast of Tasmania, received information from BCD that caused it to issue a notice of potential default under the loan agreement.

Bendigo Mining Ltd has said that it may terminate the proposed merger with Beaconsfield Gold if it did not meet the terms of the Scheme Implementation Agreement to fulfil the merger. Despite record gold prices, Beaconsfield recently reported a $1.4 million loss for the 2009-10 financial year. BCD shares have been in a trading halt since October 7, 2010 pending an announcement from the company.

Written by

Joel Scanlon

Joel relocated to Australia in 1995 from the United Kingdom and spent five years working in the mining industry as an exploration geotechnician. His role involved utilizing GIS mapping and CAD software. Upon transitioning to the North Coast of NSW, Australia, Joel embarked on a career as a graphic designer at a well-known consultancy firm. Subsequently, he established a successful web services business catering to companies across the eastern seaboard of Australia. It was during this time that he conceived and launched News-Medical.Net. Joel has been an integral part of AZoNetwork since its inception in 2000. Joel possesses a keen interest in exploring the boundaries of technology, comprehending its potential impact on society, and actively engaging with AI-driven solutions and advancements.

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APA
Scanlon, Joel. (2019, March 19). Beaconsfield Gold and Bendigo Mining Merger in Doubt. AZoMining. Retrieved on April 20, 2024 from https://www.azomining.com/News.aspx?newsID=529.
MLA
Scanlon, Joel. "Beaconsfield Gold and Bendigo Mining Merger in Doubt". AZoMining. 20 April 2024. <https://www.azomining.com/News.aspx?newsID=529>.
Chicago
Scanlon, Joel. "Beaconsfield Gold and Bendigo Mining Merger in Doubt". AZoMining. https://www.azomining.com/News.aspx?newsID=529. (accessed April 20, 2024).
Harvard
Scanlon, Joel. 2019. Beaconsfield Gold and Bendigo Mining Merger in Doubt. AZoMining, viewed 20 April 2024, https://www.azomining.com/News.aspx?newsID=529.