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Business News of Sunday, 22 June 2014

Source: miningweekly

Bibiani gold project gets new buyers

Gold miner Resolute Mining has taken full ownership of the Bibiani gold project, after buying the project from ASX-listed Noble Mineral Resources in December last year.

The company told shareholders last week that the Minister of Mines has approved transfer of the project, along with a resolution of all the outstanding issues.

“Taking ownership of Bibiani represents a significant milestone for Resolute and is a key step forward in our quest to restart the project for the benefit of all stakeholders,” Resolute CEO Peter Sullivan said.

“We are excited by the development opportunity at Bibiani, and now that the ownership has been settled we intend to move quickly to start drilling as the first stage of the feasibility study.”

Resolute will undertake a feasibility study for an underground operation at Bibiani, which will be completed within 24 months. As part of this, work will start on a 2,000 m drill programme to better delineate the underground resource.

The project will continue under care and maintenance while the feasibility study is progressed. Noble fell into administration in September last year after it was unable to pay an A$4.8million debt to one-time corporate adviser Rothschild Australia.

As part of the Bibiani deal Resolute advanced US$7million in interim funding, with rights to obtain security on a limited recourse basis, as a means of supporting the Bibiani assets pending approval of the scheme’s arrangement.