By TERENI KENS
JUNIOR miner and Canadian Vangold resources Ltd has bought of New Guinea Gold (NGG) Corp's four gold properties in Papua New Guinea in a recent business transaction.
This will see the Toronto Stock Exchange (TSX) listed company, Vangold to acquire and consolidate a 100 percent interest in the four gold properties which include Mt. Penck - West New Britain, Allemata - Milne Bay, Fergusson - Milne Bay and Feni - New Ireland. The company has also obtained shares in Pacific Kanon Gold Ltd ("PKG") and associated interests in certain mineral properties.
To complete the acquisition Vangold has spent approximately Cdn$500,000 (K1.2 million) and over 6 million common shares to NGG of the purchase.
In a company announcement Vangold has also agreed to provide NGG a 5 percent carried interest in the Mt. Penck, Allemata and Fergusson properties, and a 10 percent carried interest in the Feni Island property, in each case until completion of a "bankable feasibility study" at which time NGG will contribute its share of costs for the property or be diluted in accordance with normal industry standards. The common shares are subject to a hold period expiring May 30, 2010.
The CEO and President of Vangold Dal Brynelsen while commenting on the transaction said he is satisfied with the acquisition so far.
"I am very pleased that Vangold has secured a 100 percent interest in the Kanon and Feni gold camps. This will allow Vangold to achieve its long sought after goal of creating a viable advanced gold exploration company based in Papua New Guinea.
"Each of the four gold properties offers a unique path to discovery. It is important that New Guinea Gold continues to have direct involvement in these gold properties, providing invaluable technical and administrative expertise and support when called upon. We are pleased to have New Guinea Gold as a major shareholder and value our continued relationship with them."
Meanwhile, NGG and Private Company 7238550 Canada Ltd (PC) have modified PC's Option Agreement to include the Weioko Project, Sehulea Property, EL 1069, situated in Milne Bay Province.
The total expenditure commitment to earn a 50 percent interest has increased from C$5 million (K12 million) to C$8 million (K20 million). This commitment is expected to be completed within 3 years and sixty days of the date the PNG Government renews EL 1091, Normanby, expected to be on or before April 25, 2010.
The company's CEO and Chairman, Bob McNeil said the expansion is economical.
"We have expanded the Joint Venture to include the Weioko project which is only 12 kilometres 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 Joint Venture 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 program 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," concluded Mr. McNeil.