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PERTH (miningweekly.com) – Gold miner Resolute Mining has executed its proposed deed of company arrangement with fellow ASX-listed Noble Mineral Resources, effectively giving the miner ownership of the Bibiani gold project, in Ghana.
The deed of company arrangement was signed after Noble creditors approved the transaction in November.
“Following approval of our proposal by Noble creditors, we are pleased to have swiftly moved to execution of the deed of company arrangement, and to have established interim funding arrangements to facilitate a viable way forward for both creditors and the Bibiani project,” said Resolute CEO Peter Sullivan.
Resolute would now take full ownership and become the operator of Bibiani, providing interim funding to maintain the project as a mechanism to support the existing schemes of arrangements regarding Noble’s Ghanaian subsidiaries.
Noble would retain ownership of its gold concessions outside Bibiani in the form of exploration licences at Cape Three Points and Nakroba. The two licences would be offered for sale, with the realised proceeds to be distributed to creditors other than the trustee for Noble’s convertible noteholders.
In addition, the existing cash balance of Noble would also be distributed pro-rata, to the entitlement of all Noble’s creditors, including the trustee for the noteholders.
Sullivan noted that Resolute would advance $7-million in interim funding, with rights to obtain security on a limited recourse basis, as a means of supporting the Bibiani assets, pending the approval of the scheme of arrangement, which was currently progressing in Ghana.
With the signing of the deed of company arrangement and the interim funding in place, two of the key conditions precedent to implement the deed of company arrangement, had been satisfied.
Sullivan said that Resolute was continuing to work with the Ghanaian government for consent to the transfer of the Bibiani mining licence, and if required, approval of the scheme of arrangement by creditors and the High Court of Ghana.
The outstanding conditions were likely to be satisfied or waived by the end of March next year.
Noble fell into administration in September after it was unable to pay A$4.8-million debt to one-time corporate adviser Rothschild Australia.