30/10/2012 - 15:21

Resolute sweetens Noble finance offer

30/10/2012 - 15:21

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Resolute sweetens Noble finance offer

Resolute Mining has sweetened its $85 million financing offer to Noble Mineral Resources, adding on an unsecured $US15 million debt facility to cater for Noble’s short-term requirements.

Resolute today said the facility was effectively an advance on a $US20 million guarantee it originally proposed last week.

The Perth-based gold miner submitted the $85 million offer to Noble last week, after China’s Zhongrun Group made a similar finance offer, to fund the development of the Bibiani gold project in Ghana.

Noble is seeking the funds to ramp up production at Bibiani to more than 150,000 ounces per year.

The project has produced more than 5,500 ounces of gold to date.

Noble, however, labelled the Resolute offer as inferior, uncertain and unequitable, saying its preference would be to stick with the Chinese investment.

Resolute chief executive Peter Sulivan said today’s improved offer addressed Noble’s concerns surrounding short term funding uncertainty.

“This improvement increases the onus on the Noble directors to consider their fiduciary duties to shareholders and reconsider their rejection of Resolute’s offer.

Resolute’s financing offer is conditional on the proposed investment by Zhongrun not proceeding.

At close of trade today, Resolute’s stock was up 1.4 per cent, to finish at $1.81, while Noble shares gained 3.7 per cent, trading at 14 cents. 

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