Creditors of Namibian Minerals (NMR-T) have approved a plan of arrangement that will bring the company’s subsidiaries out of provisional liquidation, leaving it to the South African courts to give final approval to the company’s bail-out.
Namco put a number of its South African and Namibian subsidiaries in provisional liquidation in February, after a January accident with the NamSSol seabed excavator left the company with severely restricted cash flow.
Namco received an infusion of US$15 million from the Israeli diamond trading house, Leviev Group, in March and resumed underwater mining in April.
Subsequent private placements raised US$12 million for the company. The Namibian subsidiaries were discharged from bankruptcy proceedings in May.
Namco has filed the prospectus required to issue the shares and US$2 million in convertible debentures. The company expects to close the deal before the July 20 deadline for issuing the shares and the August 28 deadline for issuing the debt notes.
During the second quarter of the year, offshore operations were affected by the company’s financial difficulties, which slowed repayment arrangements with its trade creditors.
Diamond production in the second quarter reached 13,755 carats. Namco is expecting much better results over the remainder of the year.
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