New Guinea's Coppermoly farms out projects to Barrick
2009-11-10 15:49 ET - News Release
BARRICK DUE DILIGENCE ON COPPERMOLY SUCCESSFULLY COMPLETED
New Guinea Gold Corp.'s Coppermoly Ltd., in which Guinea Gold holds approximately 30 million shares (approximately 23 per cent of issued capital), has released a press release entitled Barrick Due Diligence Completed -- $20-million Farm-In to Commence.
Bob McNeil, chairman and chief executive officer of New Guinea Gold, is also a director of Coppermoly. Mr. McNeil commented: "We believe this release is material and relevant to New Guinea Gold in view of its large equity in Coppermoly. The Coppermoly share price closed at $15.5 (Australian) on the ASX on Tuesday, Nov. 10, 2009, giving a value to NGG's holding in Coppermoly of $4.65-million (Australian), or approximately $4.55-million (Canadian). This is a very attractive deal for Coppermoly, with excellent substantial upside for NGG. We believe this transaction validates NGG and Coppermoly's strategy of bringing in partners to speed up project development while retaining significant upside for shareholders."
The information in this release was prepared under the direction of Robert D. McNeil, a member of the Australasian Institute of Mining and Metallurgy and a qualified person as defined by National Instrument 43-101. Mr. McNeil has read and approved the information contained herein.
The following is the content of Coppermoly's news release, further to its announcement dated Oct. 12, 2009.
Barrick (PNG Exploration) Ltd., a wholly owned subsidiary of Barrick Gold Corp., has today notified Coppermoly that it has successfully completed its due diligence under the terms of the letter agreement between the two companies.
Barrick will now commence its farm-in by sole financing up to $20-million (Australian) to earn up to 72 per cent in Coppermoly's emerging world-class copper projects on the island of New Britain, in Papua New Guinea.
Barrick's minimum commitment is $3-million (Australian) within the first 24 months.
Barrick will also subscribe for 6,309,647 fully paid ordinary shares in Coppermoly, at nine cents a share, which was Coppermoly's share price at the time of signing of the letter agreement, raising $567,868.
The Barrick placement will represent approximately 5 per cent of the share capital of the company and will be voluntarily escrowed from sale for a minimum of two years.
When the placement is completed, Coppermoly will have approximately $2.8-million in cash and cash equivalents.
