NGG unloads stake in Crater Mountain gold

Business, Main Stories


NEW Guinea Gold Corp will unload a portion of its stake in the Crater Mountain gold project to Gold Anomaly Ltd in exchange for its 31,250,000 common shares.
The deal was reached under a letter of intent signed between the two companies.
NGG has direct and indirect interests in eight gold and two porphyry copper-gold-molybdenum properties.
NGG holds a 10% interest, free-carried to “bankable” feasibility, in the Crater Mountain project located near the current OK Tedi Mine in Western province.
According to a statement released on Tuesday, the transaction is subject to required regulatory approvals and other consents and approval by GOA shareholders.
Maurice Gannon, NGG’s president said: “Given that Gold Anomaly is project manager of Crater Mountain, a consolidation of the ownership of the project in exchange for shares makes a lot of sense for both parties.
“The simplified project structure will assist in expediting project development,” Gannon added.
GOA is an Australian security exchange-listed junior company focused on exploration and predevelopment projects in PNG.
Based on the results to date, GOA’s flagship project– the Crater Mountain gold – has the potential to become a major gold system.
GOA  is also focused on starting its gold mining activities at the high-grade gold project at Sao Chico in Brazil.