NEW Guinea Gold (NGG) Ltd and Private Company (PC) Canada Ltd have modified PC’s option agreement to include projects in Milne Bay province.
This was for Weioko project and Sehulea property exploration licence (EL) 1069.
The total expenditure commitment to earn a 50% interest has increased from Canadian $5 million (K13 million) to C$8 million (K20 million).
This commitment must be completed within three years and 60 days of the date the PNG Government renews EL 1091, Normanby, expected to be on or before April 25.
Bob McNeil, NGG chief executive officer and chairman said: “We have expanded the joint venture (JV) to include the Weioko project which is only 12km from Imwauna on Normanby Island. It makes sound economic sense to include development of Weioko with Imwauna.
“At the present time, we would anticipate the exploration funding commitment will be spent quickly, with our JV partner intending to begin underground exploration to determine how best to mine this high grade gold system.
“Underground exploration will also allow deep exploration (drilling) of the system to better determine its depth extent. It is currently anticipated that future mining at Imwauna would be partly open pit and partly underground, and this exploration programme will move us more rapidly in that direction.
“We are very pleased that this new agreement will provide for the expeditious development of both these important projects.”
The agreement between the parties has been varied to take account of the recent successful C$5.1 million (K12.9 million) fund raising by NGG. The C$1 million (K3 million) placement to NGG noted in the original LOI has been deleted to limit further dilution.