THERE is a need to find a credible company to continue gold exploration at Mt Kare, Enga province, if the gold deposit is to develop into a viable project.
This has become urgent after Madison Enterprise, holder of mining licence 1093, had ceased exploring its mining rights after it failed to pay its debtors.
This was revealed yesterday by a senior Government official close to the Mt Kare activities.
“What is important is that we get a credible company to continue where Madison left off … it is just fair for us to work to find a reputable company to carry this out,” the Government official said.
Madison is now under liquidation, a process said to be the first of its kind in the local mining industry.
The liquidation proceeding was ordered by the National Court recently and the proceeds of the sale would be paid to its debtors.
The Government officer also clarified that the results of Madison’s exploration work were being offered to potential bidders in PNG and overseas and that EL1093 was needed to cushion this sale.
However, EL1093 was not for sale, the Government officer stressed.
Deloittes, the liquidator for Madison, would automatically deal with landowners’ existing entitlement to a 10% free carried interest in the project through to feasibility.
Madison has held EL1093 for 12 years and due for review next in August next year.
The results of Madison exploration must be sold, if not the licence (EL1093) would be forfeited to the National Government.
The Government officer also said all issues relating to landownership, joint venture agreements and arrangements with Madison during its operations must be taken up with the Deloittes before the transactions take place.
This also included the Mt Kare Joint Venture (MKJV) which the umbrella landowner company Kare-punga Development Corp entered into with Madison in 1996.
Even Buffalo Gold Ltd which carried out further exploration work for Madison needed to consult the liquidator on their side of the dealings with Madison because the Government could not allow it to continue exploration work as Madison was the license holder, the Government officer said.