GOLD miner Barrick (PNG) Ltd will now start its farm-in by sole-funding about A$20 million (K49.6 million) to earn up to 72% in Coppermoly’s copper projects in the New Britain area.
Barrick, a subsidiary of Canada’s Barrick Gold Corp, would commit A$3 million (K7.42 million) as a minimum within the first 24 months.
It would also subscribe for 6,309,647 fully-paid ordinary shares in Coppermoly Ltd at A$0.09 (K0.22) a share (which was the company’s share price at the time of signing of the letter agreement) raising A$567,868 (K1.4 million).
This was announced to the markets following its successful completion of its due diligence under the terms of the letter agreement between the two companies.
This announcement follows last Oct 12 notice by Barrick.
Coppermoly’s managing director Peter Swiridiuk, in the announcement, said when the placement was completed, Coppermoly would have about A$2.8 million (K6.9 million) in cash and cash equivalents.
New Guinea Gold Corp (NGG) holds about 30 million shares (about 23% of issued capital) in Coppermoly.
Meanwhile, Barrick’s (Australia Pacific) director for corporate affairs Dr Ila Temu said recently that Barrick would be spending a lot of money on exploration especially in PNG.
“PNG is a very important part of our regional possession because we hold the biggest project in Porgera gold mine in Enga province … Barrick is going to spend more money in exploration,” he said.
“The Only way to fund our development is by using the resources that we have here. There is no other way,” Dr Ila said as he noted objections by non-government organisations in relation to major projects in the country.