(MENAFN- ProactiveInvestors - Australia) Minera Gold (ASX: MIZ) had reached in principle agreements with four Brazilian lenders to help progress development of the Crista open pit deposit that forms part of its Engenho Gold Project in southern Brazil.
All four lenders have agreed to restructure and/or settlement arrangements, which are in the process of being formally documented by the lenders and the company's legal advisers.
Once these agreements a signed, a new creditor plan will be finalised and put to all creditors for a vote. This will then be submitted for approval at a meeting of creditors to be convened by the end of February 2013.
Minera's Brazilian subsidiary, Mundo Mineracao, is in the advanced stages of restructuring its operations.
Minera had in December received approval to go ahead with the construction and mining of Crista.
Crista is a small but potentially lucrative open pit that has the potential, subject to funding, to generate free cash flow of more than $17.5 million over a 15 month period, based on a gold price of US$1,650 per ounce.
Cash costs are expected to be less than US$700 per ounce with the operation utilising contract mining and the existing process plant which is located 1.5 kilometres south of Crista.
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