Campbell calms creditors

The plan of arrangement filed by Campbell Resources (CCH-T, CBLRF-O) to get out of creditor protection has been approved by Campbell’s creditors.

Following the vote, the Quebec Superior Court extended protection to the end of October. Campbell put itself into protection under the Companies’ Creditors’ Arrangement Act in June 2005.

The company recently concluded a financing agreement with Sprott Securities and Nuinsco Resources (NWI-T, NUIRF-O). The deal would raise $10 million and $4 million of the cash would be used to clear off the current liabilities. Another $5 million may be raised in a rights offering to existing shareholders.

The financing is conditional on Campbell’s emergence from creditor protection.