Veris Gold Corp. appoints Restructuring Special Committee
Veris Gold Corp. has announced the appointment of a Restructuring Special Committee (the “Special Committee”) to investigate strategic alternatives and to plan the financial restructuring of the Company.
The Special Committee is chaired by François Marland, President and CEO, and the other members are independent directors Gerald Ruth and Dr. Barry Goodfield.
The Special Committee announced that it had retained Raymond James & Associates, Inc. as its sole investment banking advisor to provide financial advice to the Special Committee concerning a variety of potential business transactions that may be undertaken in the course of the financial restructuring of the Company. Raymond James is one of North America's largest full service investment banks offering corporate finance services, institutional sales and trading and retains one of the industries' largest systems of financial advisors. Raymond James has institutional expertise in the mining sector and significant experience providing restructuring advisory services.
The catalyst for this new initiative was the Company falling into default of its debt repayment obligations to Deutsche Bank AG (“DB”), London Branch (news release dated January 29, 2014) due to a fire at the mill at the Company’s Jerritt Canyon Mine in Elko, Nevada, which consequently caused a temporary production shut down in December, 2013.
Francois Marland, President and CEO of Veris Gold stated, "We are very pleased to be working with Raymond James, a well-known and highly-respected full service international investment bank. The fire at Jerritt Canyon in December placed the Company in a difficult financial position. However, the Management Team, the Board of Directors and the newly formed Restructuring Special Committee are dedicated to ensuring that the Company has access to the best refinancing and restructuring options and venues available."
About Veris Gold Corp.
Veris Gold Corp. is a growing mid-tier North American gold producer in the business of developing and operating gold mines in geo-politically stable jurisdictions. The Company's primary assets are the permitted and operating Jerritt Canyon processing plant and gold mines located 50 miles north of Elko, Nevada, USA. The Company's primary focus is on the re-development of the Jerritt Canyon mining and processing plant. The Company also holds a portfolio of precious metals properties in British Columbia and the Yukon Territory, Canada, including the Ketza River Property.