PERTH (miningweekly.com) – The creditors of embattled Noble Mineral Resources have approved a proposed deed of company arrangement by fellow ASX-listed Resolute Mining, which would see Resolute take full ownership of the Bibiani project.

Noble’s administrators have already backed the proposed deed, saying 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.

Resolute said on Wednesday that creditor approval of the deed of company arrangement was a positive step to provide a greater return for Noble’s creditors than would be available in a liquidation scenario.

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 implementation of the deed of company arrangement was still subject to a number of conditions, including the formal execution of documentation, Resolute entering into the interim funding arrangement with the deed administrators, and if necessary, consent from the relevant Ghanaian Ministers to transfer the Bibiani mining licence.

It was expected that these conditions would be either met or waived by the end of March next year.

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.