Resolute takes control of Bibiani

UPDATE 2.45pm: Resolute Mining is set to take ownership of the Bibiani gold project in Ghana from Noble Mineral Resources.

Resolute emerged as the main creditor of Noble when it collapsed in September last year but needed a deed of company arrangement and approval from the Ghanian government to formally take ownership of the shelved project.

The company will pick up a 90 per cent interest in the advanced West African gold project, with Ghanaian government holding the balance.

Resolute said Bibiani had a substantial resource base, established infrastructure and historic production in excess of four million ounces of gold.

The company said it would begin working immediately on a feasibility study for Bibiani based on an underground operation as well as an exploratory drilling program to shore-up the resource.

Resolute said Bibiani would continue under care and maintenance while the feasibility study progressed.

"The former employees of the Ghanaian subsidiaries of Noble will be paid their entitlements in accordance with the terms agreed and contemplated under the scheme as will indebtedness to local creditors," the company said in a statement.

"This will involve initial payments of approximately $US10 million with a further $US5 million over the next 12 months."

Resolute chief executive Peter Sullivan said taking ownership of Bibiani represented a significant milestone for the company and was a key step forward in it quest to restart the project.

"We are excited by the development opportunity at Bibiani and now that the ownership has been settled we intend to move quickly to start drilling as the first stage of the feasibility study," he said.

Resolute shares closed up 2.5 cents, or 4 per cent, at 65 cents.