NGGC sells two PNG assets

Business, Normal

The National

THE New Guinea Gold Corp (NGGC) will sell two of its properties in  Papua New Guinea for C$3 million (about K8 million).
NGGC entered into a letter of intention (LOI) with Vangold Resources Ltd to sell the company’s interest in Pacific Kanon Gold Corp (PKG) and NGGC’s Feni Island property in New Ireland province).
The purchase price includes a carried interest by NGGC at 10% for Feni Island, 5% for Mt Penck and 5% for Alamada and Ferguson properties held by PKG.
The details of the sale to Vangold are: 30,000,001 common shares of PKG, a private company incorporated in British Columbia; NGGc’s 20% interest in the Mount Penck property in West New Britain province; and a 50% interest in NGGC’s Feni Island property.
NGGC chairman and chief executive officer Bob McNeil said the purchase price for the acquisition was C$3 million, to be satisfied by a cash payment of C$500,000 (about K1,258,180) and the issuance of a number of Vangold common shares equal to 19.9% of the issued and outstanding Vangold common shares following a proposed re-organisation of Vangold.
“The payment shares will be issued upon completion of Vangold’s proposed reorganisation and the proposed consolidation … if the  reorganisation is abandoned or is not completed, the payment shares will be issued on or before May 19, 2010.”