NGCC unloads half of its Milne Bay asset

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The National

NEW Guinea Gold Corp (NGGC) has granted a Canadian firm an option to earn 50% interest in a Milne Bay property for C$2 million (K5 million) plus C$5 million (K13 mil) exploration commitment.
NGGC entered into an option agreement last Monday with a private company 7238550 Canada Ltd (the optionee).
The option provides the optionee the right to acquire a 50% legal and beneficial interest in Normanby’s exploration licence (EL) 1091 Imwauna property for a series of cash payments totalling C$1 million (K2.5 million), plus the purchase by way of private placement of C$1 million (K2.5 million) worth of NGGC common shares.
NGGC said  the optionee must complete exploration expenditures totalling a minimum of C$5 million (K13 million) over two years.
The option agreement called for an immediate cash down payment of C$50,000 (K127,324) by the optionee, a further payment of C$200,000 (K509,295) upon receipt of written confirmation from the PNG Government that it required only completion of a Preliminary Assessment on Imwauna at this stage of development, and a final payment of C$750,000 (K1.9mil) on the completion of a C$5 million (K13mil) financing by the optionee by December end (2009).