A decision on the future of Australian gold miner Norseman Gold (LON:NGL) has been put back until March.
Norseman appointed a voluntary administrator to its main operating subsidiary CNGC in October after cash and production problems.
CNGC has continued to trade under the administrator's control but cash losses have been significant during the administration period, according to a statement today.
The losses are likely to continue for some time, but are projected to reduce significantly.
The administrator is being indemnified for the losses by major shareholder Tulla Resources, the investment vehicle of mining tycoon and Norseman’s executive chairman Kevin Maloney.
Tulla and the directors of CNGC are likely to propose a deed of company arrangement, but are waiting to see the results between December and February.
For the foreseeable future CNGC will mill tailings only and maintain relevant tenements, plus care for and maintain the mine site generally.
Tulla and the directors of CNGC and Norseman Gold are continuing their discussions with several interested parties in relation to recapitalisation of Norseman Gold or a possible farm-in or joint venture deal for CNGC.
Norseman Gold shares are suspended.