Noble Mineral Resources will fund the commissioning and ramp-up of gold production at its Bibiani project in Ghana with an $85 million financing offer from Resolute Mining. The decision comes after shareholders voted against a proposed investment by Zhongrun Resources Investment earlier this month.
Noble says the Resolute offer addresses the company’s key concerns and is the best funding option available for the acceleration of ramp up at Bibiani to reach an annual production target of more than 150,000 ounces. The investment will also pay for existing liabilities including an Investec project loan.
Noble’s managing director Wayne Norris says, “Resolute’s revised offer addressed a number of our key concerns as they related to certainty and execution risk. It is the best available option for the company providing both an immediate and a longer-term funding solution.
“We welcome Resolute as a significant new shareholder (19.99%) in Noble and look forward to their ongoing support as we look to maximize the value of Noble’s assets in Ghana.”
He says the past several months have seen considerable importance placed on securing a solution to the company’s immediate and longer-term financing needs.
“Now we have this in place, we can once focus on unlocking the potential of Bibiani for the benefit of all stakeholders,” says Wayne Norris.
Noble is focused on exploring for large-scale gold deposits in the world-class Ashanti Gold Belt in Ghana, West Africa. In 2010 the company acquired the 30 million ounce Bibiani gold mine, which is in the Sefwi-Bibiani Gold Belt in Ghana.
Noble’s other primary gold concessions include exploration licences at Cape Three Points, Brotet and Tumentu, which cover 141.3sqkm within the Ashanti gold belt.
The company’s ongoing focus will be to expand the drilling program at Bibiani to target new shallow resources near the existing mine and adjacent tenements, while still progressing the Cape Three Points, Brotet and Tumentu concessions. Noble believes there is significant potential for the delineation of additional high-grade gold mineralization relating to the down-plunge and strike extension to these zones.