Coppermoly’s longstanding exploration application for the Powell tenement in East New Britain province has been granted by Papua New Guinea’s Minister for Mining for two years.
The Powell tenement covers 763sqkm and lies in the Powell Copper Belt, a northwest trending fault structure highly similar to the Kulu-Awit structure containing the company’s advanced and highly prospective licences and applications in West New Britain.
The Powell exploration licence grant expands Coppermoly’s New Britain land significantly in a new copper belt while introducing new exploration potential where existing expertise and facilities can be applied. This does so without adopting substantial additional expenditure commitments in the short-term.
Coppermoly has reached an agreement to amend terms of the re-acquisition agreement and, in addition, completed the first payment to Barrick (PNG Exploration) Ltd.
Coppermoly managing director Maurice Gannon says, “We appreciate Barrick’s consideration in agreeing to the variation. This variation and the recent capital raising have enabled us to recommence exploration of the company’s tenements in West New Britain.” This allows Coppermoly to revert from a relatively passive to an active explorer with a view to future development, he adds.
The amendment will defer payment, until August 2014, of part of the initial payment due to Barrick by reducing the initial payment from approximately $1.011 million, including interest, to an amount of $680,000. This will increase the second payment, pending August 2014, from $1 million to $1.331 million. Completion of the initial payment has taken Coppermoly to a 51% interest in its Nakru, Simuku and Talelumas exploration licences in West New Britain.
The second payment will take Coppermoly to a 72% interest, and a final payment of $3 million will take it to 100% ownership and will occur on or before the earlier of August 2018 and the date Coppermoly releases feasibility on any one or more of the exploration licences to the ASX. Both Nakru and Simuku licences possess JORC-compliant inferred mineral resources.