|Coppermoly’s exploration tenements on the island of New Britain.|
COPPERMOLY has reached agreement with Barrick (PNG Exploration) Limited to amend the most recent deed of variation to the reacquisition agreement regarding the West New Britain project. The company has also reached agreement with its largest shareholder Jelsh Holdings to extend the term of a bridging loan.
The amendment involves extending the timeframe for satisfying the conditions precedent to the variation, being the raising of additional funds and the repayment of the bridging finance loan between Coppermoly and Jelsh until December 31, 2014, and extending the timeframe for the issue of shares to Barrick, or its nominee, in satisfaction of the amount of the deferred payment amount of $1,317,836, by amending the definition of the term deferred payment date to be January 9, 2015.
Barrick has also agreed to amend the conditions precedent to the variation by reducing the amount of funds Coppermoly has to raise in order to satisfy the variation, reducing it from $1.5 million to $1.2 million.
Following the variation, the reacquisition agreement provides that Coppermoly may satisfy the second payment due to Barrick on January 9, 2015, being $1,317,836, through the issue of securities, subject to Coppermoly satisfying the conditions precedent; and the final purchase price for Barrick’s residual 28% interest in the West New Britain project shall be payable no later than six months after commencement of commercial production at the project.
Coppermoly has also reached agreement with Jelsh to extend the term of the $500,000 bridging loan provided in July 2014 until January 9, 2015. The extension has not resulted in Coppermoly being required to pay or incur any additional fees or penalties.
During the September quarter Coppermoly undertook an internal review to prioritize and determine the best use of available funds in the immediate future. The company’s most advanced project is Nakru including the Nakru 1 and adjacent Nakru 2 prospect where drilling in 2014 intersected high grade near-surface copper mineralization. The company has maintained a small camp at Nakru 2 to maintain the site ready for further drilling once funds are available.
The internal review produced a short list of regional targets as candidates for next field work, subject to a data review. The targets include Nakru 3, Nakru 4, Nakru 2 Northwest and Malolo Creek, all on the Nakru tenement, Mt Misusu on the Talelumas tenement, and Pulding on the Makmak tenement.
More detailed review and field work to further evaluate these targets will be undertaken once funds are available.
Coppermoly’s exploration activities are focused entirely on New Britain where it holds six exploration licences covering copper, gold, silver, zinc, molybdenum and iron mineralization.