PERTH (miningweekly.com) – ASX-listed Pluton Resources has, again, been placed under administration after its board accepted a recapitalisation and restructuring plan from shareholder General Nice Recursos Commercial Offshore De Macau (GNR).

The recapitalisation proposal would see GNR provide significant financial support to Pluton over the coming months, including a A$28-million finance facility that would be advanced by way of a 36-month convertible loan.

The funding was contingent upon Pluton entering into administration, the company’s creditors approving the recapitalisation proposal and GNR obtaining any regulatory and shareholder approvals required to implement the proposed transaction.

In return for the funding facility, Pluton would issue GNR with some 150-million options to acquire fully paid ordinary shares at a price of 1c each, with a three-year option period.

At GNR’s election, the convertible loan would also convert into shares in Pluton, at a price of 1c each, or a 20% discount to the ten-day volume weighted average price of Pluton shares up to the day before any conversion.

Pluton has further agreed to grant GNR a right of first refusal to buy all iron-ore produced from the Cockatoo Island project, except the iron-ore already covered by existing offtake agreements.

The Pluton board told shareholders on Wednesday that given the company’s current circumstances and the terms of the recapitalisation proposal, the board was unanimous in its decision to appoint administrators.

Pluton had been under pressure to repay royalty obligations owed to the state government and had been delayed in a bond offering to raise up to €50-million, necessitating the need for alternative funding.

Cockatoo Island was placed on care and maintenance in June, as Pluton suspended operations in the hopes of finalising funding negotiations.

Pluton in November 2014 battled receivership after junior Chinese creditor Rizhao Port Group appointed receivers and managers, prompting fellow-listed Watpac to suspend an existing mining services contract at the Cockatoo Island project.

GNR, at that point, also appointed its own receivers and managers to oversee Pluton’s affairs and, by March, the Pluton board had regained control of the company.