Resolute to restructure Noble

Resolute Mining intends to officially purchase Noble Mineral Resources' Bibiani project and sell off its remaining assets with a proposed deed of company arrangement.

As a part of the deal, Resolute will provide funding to maintain Bibiani in support of the existing schemes of arrangement announced by Noble in September.

“Resolute is pleased to put forward a viable proposition for the Bibiani gold project, whilst facilitating an outcome for creditors that will see a higher return than would otherwise be available in the event of a Noble liquidation,” Resolute chief executive Peter Sullivan said.

“We remain positive of the opportunity at Bibiani which gives us access to an advanced West African gold project. On completion of the DOCA we would move quickly to conduct a feasibility study on restarting production from an underground operation.”

Under the proposed DOCA, Noble will retain ownership of its other gold concessions outside of Bibiani, with its exploration licences at Cape Three Points and Nakroba in the southern extension of the Ashanti gold belt to be sold off.

Noble’s existing cash balance will then be distributed pro-rata to creditors and the trustee for note holders, while the proceeds of the sale of the two gold concessions, also pro-rata, will be distributed to all creditors other than the trustee for note holders.

In November 2012, Resolute had an $85 million offer accepted by Noble to acquire a 19.9 per cent stake in the company.

Resolute also acquired nearly 100 per cent of Noble's convertible notes making up the majority of Noble's outstanding debt.

In September this year, Noble failed to successfully negotiate the stay of a $4.7 million debt to investment group Rothschild Australia, consequently placing itself into voluntary administration.

It is expected Noble creditors will meet to consider the approval of the DOCA in the next few weeks.

Resolute shares were trading at 56 cents, down 2 cents, whilst Noble shares are unchanged at almost 1 cent due to a voluntary trading halt enacted in July.