PanAust enters 20pc share deal

PANAUST Limited entered into an agreement in March for the purchase of Highlands Frieda Limited’s 20 per cent interest in the Frieda River copper-gold project in West Sepik.
According to the company’s quarterly report released yesterday, the agreement was subjected to a number of conditions including the implementation of a transaction whereby Cobalt 27 Capital Corp acquires all of the shares in Highlands Pacific Limited which it does not currently own by way of a “scheme of arrangement”.
It stated that the Mineral Resources Authority confirmed the renewal of six exploration licences related to the Frieda River copper-gold project.
Last December, PanAust announced the Sepik development project, a new development pathway for the Frieda River project.
It focuses on the development of shared-use infrastructure that will support, and in turn be supported by, a hydroelectric facility and mine operation.
The Sepik development project contemplates four interdependent projects that together will create a new economic corridor in West and East Sepik – the Sepik infrastructure project, the Frieda River hydroelectric project, the Frieda River copper-gold project, and the Sepik Power grid project. The Sepik development project will improve transport and connectivity, facilitate delivery of services to remote communities, and boost domestic and international trade and investment.
PanAust executives had met PNG Cabinet ministers during the March quarter focused on key environment aspects, project scope and cost, funding strategy and indicative project timelines.
PanAust says it remains committed to advancing the nation-building Sepik Development project.
PanAust holds an 80 per cent interest in the Frieda River project with Highlands Frieda Ltd holding 20 per cent.
The copper-gold project is located 175km north-west of the Porgera gold mine in Enga and 75km north-east of the Ok Tedi mine in Western.