Troubled miner Norseman Gold’s (LON:NGL) creditors have given the green light to its restructuring plan.
Norseman appointed a voluntary administrator to its main operating subsidiary CNGC in October after cash and production problems while its shares were suspended.
Yesterday, major shareholder Tulla Resources and Norseman put forward proposals for CNGC to enter a deed of company arrangement (DOCA) and a creditors’ trust to be set up.
Today, the creditors of CNGC approved the execution of the proposed deed, with secured creditors now required to reach an agreement as to the circumstances of the existing securities and any fresh security that may be granted by directors.
If the DOCA is completed “satisfactorily”, CNGC will be returned with no change in ownership or control. The company hopes to resume trading its shares on AIM and in Australia “without delay” after completing any outstanding regulatory requirements.
If it is not completed within 15 business days of approval, CNGC will be wound up, Norseman added.
The company said a further announcement will be made following the meeting of secured creditors planned for March 8.