The Supreme Court of Western Australia granted FTI an extension of the convening period of the second meeting of creditors to November 4, 2019.

FTI said that would give it time to either recapitalise Gascoyne, or sell its assets.

Following the administrators' initial assessment, with the assistance of Mining One, of the current state of operations at the Dalgaranga gold mine in Western Australia, the resource modelling and mine planning, FTI determined that in order to achieve the best value for creditors, it would be preferable to continue to operate the mine, rather than place it into care and maintenance.

The administrators were concerned the suspension of the mine would be further value-destructive and result in job losses.

Key stakeholders, including employees, banking lenders, mining contractor NRW Holdings, and suppliers remain supportive of continued operations.

Administrators have appointed Investec Australia as corporate advisor as a ‘dual track' process is pursued.

FTI will pursue either a recapitalisation of Gascoyne via a capital raising or merger, or the sale of Dalgaranga and other assets.

Gascoyne collapsed on June 2 after the fledgling Dalgaranga operation continued to underperform.