Noble administrators back Resolute proposal
PERTH (miningweekly.com) – The administrators of embattled Noble Mineral Resources have backed a proposed deed of company arrangement by Resolute Mining.
In a statement to shareholders, the Noble administrators said that it would be difficult to extract value from the Bibiani mining asset, in Ghana, given the quantum of outstanding employee and creditor claims, the overriding risk of forfeiture and the funding required to preserve the asset, complete the feasibility studies and carry out future capital work recommended by those studies.
The administrators also warned that the company’s assets were insufficient to extinguish all creditor debts, making the proposed deed of company arrangement the best option for shareholders.
Under the proposed deed of company arrangement, Resolute would take full ownership and become the operator of Bibiani and would provide 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.
The cash-strapped Noble went into voluntary administration in September, after it was unable to pay a A$4.8-million debt to Rothschild Australia, relating to an A$85-million financing deal with Resolute.
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