PERTH (miningweekly.com) – Gold miner Resolute Mining has proposed a solution to embattled miner Noble Mineral Resources, which will see the company take full ownership of the Bibiani gold project, in Ghana.

Resolute, which is effectively Noble’s largest external creditor, on Monday proposed to work with the company’s administrators to provide a greater return to its creditors than would otherwise be available in a liquidation scenario.

Resolute suggested a deed of company arrangement, which it said would remove the uncertainty that existed regarding the future ownership and operation of the Bibiani asset.

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.

Resolute said that the implementation of the deed of company arrangement would be subject to a number of conditions, including the approval of creditors, and if required, Ghanaian governmental consent.

The transaction would also be subject to the approval of the existing scheme of arrangement, and Resolute entering into the interim funding arrangement with the deed administrator on terms acceptable to both parties.

Once the deed of company arrangement had been finalised, all creditor claims against Noble would be satisfied and extinguished.

A Noble creditors meeting to consider the proposed deed would be held in the next few weeks.

Noble has previously told its shareholders that it would require about A$40-million in funding to support its Bibiani gold project during the planned feasibility study phase and to maintain the project while it is on care and maintenance.

In May, Noble suspended surface operations at the mine, as it revised its operational strategy to produce higher-margin ounces to ensure the project’s long-term sustainability. As a result of the project being placed on care and maintenance, 683 employees were made redundant.