LONDON-based Triple Plate Junction (TPJ) will cash in US$750,000 in exchange for its interest in its Wamum copper-gold project it shares with major Barrick Gold.
The company said the transaction for the undisclosed party to take its 12.14 per cent contributing interest in Wamum was subject to contract.
Furthermore, TPJ said Barrick, which holds a controlling 87.9% interest in the project, must complete joint venture negotiations with the buyer of the stake before the deal can be completed. While these negotiations were progressing, TPJ said they were doing so at a slow pace.
The Wamum project is located in located in Papua New Guinea’s Morobe Province. Wamum’s exploration licences cover an area of 196,200 hectares, with its boundaries just two kilometres to the west of the giant, gold-copper, Wafi-Golpu project.
In 2007, a letter of intent was signed between the parties granting Barrick the right to earn an 80% managing interest in Wanum by spending A$5 million on exploration within five years.
Having earned that interest, a JV agreement was signed in 2009 granting participating interests over an expanded tenement area of 80% to Barrick and 20% to TPJ.
Up to the end of 2010, TPJ had elected not to fund its share of the JV’s exploration costs, which had totalled A$9.7 million, causing its interest in the JV to dilute to 12.14%. Since then, TPJ has contributed in order to maintain that interest.
Separately, TPJ said it was in advanced discussions with another junior company licences on the Morobe site in PNG.
As for the Crater Mountain project it shares with Australian-listed Crater Gold Mining, TPJ said progress in completing the conditions to divest its 8% carried interest in the venture had been slow.
“We remain committed to finding new opportunities for the company and creating value for our shareholders,” TPJ chairman Tony Shearer said.