THE troubled Mt Kare gold project in Enga province is now being offered for sale to potential buyers overseas.
Pacific Roads Corp Finance (PacRoads) has been engaged to help the liquidator of Madison Enterprises Ltd, owner of Mt Kare, in selling exploration licence (EL) 1093 otherwise known as Mt Kare.
Lack of funds to meet its day to day operations and to pay its debts forced Madison into liquidation.
A source close to office of the liquidator revealed the hunt for buyers overseas.
“PacRoads has undertaken an international marketing campaign to seek out expressions of interest and bids from reputable mining houses and exploration companies throughout the world,” the source told The National.
“This is a tender process and the value of the Mt Kare EL will be established by the market, based on bids received.
“As such, there is no set price for the licence,” the source said in response to selling price inquiries.”
Madison is the holder of EL1093 which includes the Mt Kare gold project.
The source said EL1093 was the only asset available for realisation in the liquidation of Madison and proceeds from the sale would be dealt with under the provisions of the Companies Act which sets out the priority and process for settling the claims of creditors.
The source said funds received from the sale would be used to settle debts under the provisions of the PNG Companies Act.
The landowners’ existing entitlement to a 10% free carried interest in the project through to feasibility was being maintained and would be preserved through the tenement realisation process.
The source said the EL was current and like other exploration licences in PNG, it had two-year renewable term.
“The licence has been held by Madison for over 12 years and is due for renewal next August,” he said.
The lease area covered 220sqkm and there was 1.8 million ounce of gold and 24 million ounces of silver inferred resource at Mt Kare along the trend with similar geological setting and mineralisation to Porgera deposit.
Madison has spent more than C$40 million (K99 million) in exploration since 1996.