Australia-based Noble Mineral has unveiled a plan to restructure the debts of its Ghanaian subsidiaries and secure funding for a feasibility study for its Bibiani Gold project.
The company expects that funding of about $40m will be required during the planned feasibility study and care and maintenance phase.
Noble Mineral said that Bibiani project has a good resource base, partly developed mine access, installed infrastructure, operating processing plant, large land holding and exploration potential.
In May 2013, the company suspended surface operations at the mine, as it revised its operational strategy.
Bibiani is currently on care and maintenance ahead of a feasibility study.
Noble Mineral recently said negotiations with potential lenders and financiers have indicated that, while the required funding could be secured, the liabilities of its Ghanaian subsidiaries were an impediment to securing the funding.
The company had lodged documents with the Ghanaian High Court to begin proceedings to restructure the debt of its subsidiaries by way of three concurrent schemes of arrangement.
Noble has also applied for a moratorium on claims against the subsidiaries, pending the determination of the schemes.
The proposed schemes would deal with all of the subsidiaries’ creditors, except for statutory creditors such as for rates and taxes and the two largest external creditors, the Bank of Africa Ghana and the Australian Executor Trustee.
Noble also agreed that, despite inter-company debts of over $270m, it will not participate under the schemes and the debts will only be recovered after all external creditors hav been paid.
Image: Bibiani processing plant. Photo: Courtesy of Noble Mineral Resources.