VANCOUVER-headquartered PNG Gold Corporation has asked its legal advisors to investigate a report that its renewal application for two PNG mining permits has been knocked back.
The company reported recently that it had received correspondence from the Papua New Guinea Mineral Resources Authority (MRA) indicating that applications filed by the company seeking renewal of exploration licences EL-1069 and EL-1091 have been refused.
The company said the action had come as a complete surprise as it has previously renewed the licences without any issues.
The company reported that it had completed a work programme on the permits in November 2015 and earlier this year its representative met with various parties in PNG who the company claimed indicated no issues with the licence renewal process.
Subsequently the company has instructed its in-country legal counsel to contact the MRA to discuss the matter.
The EL-1091 and EL-1069 permits are located in Milne Bay Province.
The EL-1091 Normamby permit covers 68 sq. km including flagship prospect, Imwauna, neighboring prospect, Kelas, in addition to untested prospects, Wahola, Dimwadimwala, Ebessowa, Mwatebu, Knob, and Salupa Awa.
The EL-1069 Sehulea permit is located10 kilometres to the east of the EL-1091 Normanby property, was also acquired under a Normanby Property. It covers approximately 30.5 sq. km in two separate blocks.
Capital raising for oil recycling
Subsequent to the announcement of the MRA decision, PNG Gold Corporation announced that it planning to complete a non-brokered private placement of a minimum of C$500,000 and a maximum of up to C$3 million.
The company said the financing has been arranged to provide working capital as well as sufficient funds to evaluate the oil recycling technology that it currently has rights to as a result of loans it is has extended to Verolube Inc.