Aussie miner eyes PNG prospects

Business, Main Stories

The National, Wednesday, May 25, 2011

WESTERN Australian nickel miner, Mincor, has sought to expand its geographic footprint and diversify its operations with A$30 million (K77 million) deal targeting gold and copper in Papua New Guinea, The Western Australian newspaper reported yesterday.
Under the terms of the deal with PNG-focused, unlisted explorer Niuminco, Mincor will spend A$15 million in exploration at the Eddie Creek gold project to earn a 51%  interest and a further A$15 million (K38.5 million) to earn up to s 72 % interest in three exploration licences in the country.
The Eddie Creek pro­ject is located between gold fields of giant Hidden Valley and Wafi-Golpu mines currently under development by Morobe Mining Joint-Venture.
Mincor may also subscribe for A$5 million (K12.5 million) worth of shares as part of a capital raising by DSF International Holdings, which is buying out Niuminco.
DSF is an Australian security exchange-listed company which has been suspended from trading.
The new listed entity will be renamed Niuminco.
“The A$30 million transaction represents the most significant new business development initiative undertaken by Mincor since its successful acquisition of the Otter Juan nickel mine in 2007,” Mincor said in a statement.
Mincor managing director David Moore said the venture would offer the company some of the best prospects in PNG for world-class deposits.
He said Mincor had established a strong rapport with Niuminco/DSF, and believed that their extensive experience in PNG would be of great value to the joint venture in the years to come.
Mincor shares closed A$0.04 or 3.33% lower to A$1.01 at the end of trading yesterday.