Troubled gold miner Norseman Gold (LON:NGL) may see its shares resume trading shortly if a restructuring plan is approved by creditors.
The Australian gold miner appointed a voluntary administrator to its main operating subsidiary CNGC in October after cash and production problems while its shares were suspended.
Major shareholder Tulla Resources and Norseman have put forward proposals for CNGC to enter a deed of company arrangement and a creditor’s trust to be set up.
A meeting on 21 February will vote on the plan and if completed satisfactorily the company will press for an immediate resumption of trading in Norseman shares on both ASX in Australia and AIM in London.
Tulla has proposed a deed fund of A$8mln cash be established to pay off staff and administration expenses, to which it will contribute A$4.5mln with A$3.5mln coming from Norseman.
Tulla, and Farrer Place, both which are companies controlled by mining entrepreneur Kevin Maloney, will become secured creditors, while other creditors, including Norseman, will be classified as deferred.
If the deed of company arrangement is not executed within 15 business days of approval then CNGC will be wound up.