Aug 17 (Reuters) - Gippsland Ltd GIP.AX :
* Says highly unlikely to be able to resume its equity participation and development of the Abu Dabbab Project
* Says trading in the company's shares resumes today
* Says updates on a series of initiatives being finalised to re-establish the company
* Says "the expropriation of the Abu Dabbab Project is a devastating blow for Gippsland's shareholders"
* Has been in negotiations with key creditors since last year seeking to restructure several liabilities totalling approximately $4.0 million
* Says has successfully negotiated agreements which result in the write-off of $3.5 million of debts
* Says proposes to consolidate its share capital by a ratio of 1 new share for every 100 existing shares
* Says company plans to raise a total of $1.43 million in new equity funding before costs, through a renounceable rights issue
* Says "ambitious to re-establish and grow the company through the acquisition of a new minerals based project"
* Source text for Eikon ID:nASX6d65R7