Blackgold Natural Resources: RAG Investment Proposal Takes Centre Stage as SJT Withdraws—Critical Update for Shareholders

Key Developments in Judicial Management Process

Blackgold Natural Resources Limited (“Blackgold”), which is currently under judicial management, has released a critical update that could heavily influence its future trajectory and share value. The company has confirmed a major shift in its restructuring and investment strategy, following the withdrawal of Shu Jian Tian Yu Development Co Pte Ltd (“SJT”) from its previously prioritised investment proposal.

Highlights from the Judicial Management Update

• Judicial Management Extension: The Honourable Court previously granted an extension to the Judicial Manager’s term, allowing continued efforts to revive the company.
• Creditors’ Meeting Outcome: On 14 October 2024, creditors evaluated two investment proposals. Both were deemed acceptable, but SJT’s proposal was given priority over PT Rajawali Artha Global (“RAG”). The resolution was clear: SJT’s offer would be pursued exclusively, unless SJT became unwilling or unable to proceed.
• SJT Withdrawal: SJT, through its solicitors, has now formally notified Blackgold that it is no longer ready, willing, or able to continue with its investment proposal. This is a pivotal development that definitively shifts the company’s strategic direction.
• RAG Proposal Now Under Consideration: With SJT’s exit, the Judicial Manager has initiated discussions with RAG regarding its investment proposal. This marks a significant change in the company’s potential future, as the second bidder now has the opportunity to move forward with its plan.
• Ongoing Engagement: The Judicial Manager is actively engaging RAG through legal representatives, seeking to progress the second proposal and resolve Blackgold’s financial situation.

Implications for Shareholders and Investors

This transition is highly significant and may be price-sensitive for several reasons:

• Potential Change in Restructuring Outcome: The withdrawal of SJT introduces new uncertainty over Blackgold’s future ownership and business model, as RAG’s proposal may differ in terms, scope, or funding capacity.
• Investor Confidence: The loss of the preferred bidder could affect market sentiment, especially if RAG’s proposal is perceived as less favourable or takes longer to finalise.
• Possible Volatility: Share price could be impacted as investors react to the new developments, assess the credibility and potential of RAG, and speculate on the company’s ability to emerge successfully from judicial management.

Next Steps and Further Updates

The Judicial Manager has committed to providing additional announcements as soon as material developments occur. Shareholders are strongly advised to monitor these updates closely, consult with their financial advisors, and exercise caution in decision-making during this transition period.

Contact Information and Regulatory Note

This announcement has been reviewed by Blackgold’s sponsor, Evolve Capital Advisory Private Limited, but it has not been examined or approved by the Singapore Exchange Securities Trading Limited, which assumes no responsibility for its contents. For further queries, investors may contact Mr. Jerry Chua at Evolve Capital Advisory.

Disclaimer

This article is intended for informational purposes only and does not constitute investment advice. Investors are advised to consult with their stockbrokers, solicitors, or other professional advisors regarding any actions they may wish to take. The information provided is based on company announcements and may be subject to change as new updates emerge.

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