Embattled Canadian miner Ascot Resources has unveiled a recapitalisation and restructuring plan aimed at stabilising its finances and positioning the company for a potential restart of its Premier Gold Project, in British Columbia.

The plan includes a C$0.01-a-share rights offering, a 50:1 share consolidation, and a best-efforts private placement of up to C$150-million. The restructuring, announced this week, will be supported and advised by Fiore Management and Advisory, which has agreed to fully backstop the C$14.9-million rights issue.

Fiore will also assist Ascot with leadership changes and longer-term refinancing efforts, including negotiations with senior lender Nebari and stream partner Sprott Private Resource Streaming and Royalty. Discussions with Nebari are under way to secure a bridge loan of up to $18-million, with further amendments to existing debt and stream agreements expected to follow.

Ascot chair of the special committee, Andrée St-Germain, described the restructuring as a “turning point” for the company after a difficult period. “By partnering with a credible group such as Fiore, we are taking definitive action to create a stable capital structure to enable the advancement of Red Mountain and sustainably restart the project,” she said.

She acknowledged the plan would be a “difficult next step” for shareholders but stressed its necessity, noting that Ascot had evaluated alternatives including mergers, asset sales, and even creditor protection.

The Premier gold mine and nearby Red Mountain deposit have been on care and maintenance since June, following several years of development work. Since 2021, about C$538-million has been spent on construction, refurbishment, and site infrastructure, including a fully commissioned 2 500 t/d mill and new water treatment plant.

Once the restructuring is complete, Ascot plans to keep the project on care and maintenance while the incoming management team conducts studies on the optimal path to commercial production.