NIUMINCO Group Limited has shown its confidence in the Edie Creek mine area in Morobe Province by moving to take 100% ownership of the project.
The company, which is currently undertaking a significant upgrade and associated drilling campaign at the historical gold mine, has executed an agreement to purchase the 17% interest in the Edie Creek mining leases held by former Joint Venture partner Mincor Resources NL’s subsidiary Mincor PNG Limited, by acquiring the ordinary share capital of that company.
The purchasing company is one of Niuminco’s PNG subsidiaries, Niuminco Edie Creek Limited, which currently owns the other 83% interest in the mining leases thereby taking its ownership to 100%, and completion will take place on or before 30 July 2017.
The purchase price is A$150,000, payable two (2) years from the completion date in cash or shares (at Niuminco’s election), or earlier should Niuminco sell the leases to a third party. Should Niuminco choose to pay in shares, the share price will be the 30 day VWAP for the 30 trading days immediately preceding the date of the notice of election by Niuminco.
“We are pleased to take 100% control of the Edie Creek Mine as we now move towards greater processing capacity on completion of the current plant upgrade,” Niuminco managing director, Tracey Lake said.