CANADIAN minerals explorer TriGold Resources has terminated a share purchase agreement (SPA) with Pacific Kanon Gold Corporation to buy the latter’s interests in Papua New Guinea, held in subsidiary company Vangold PNG.
The deal, announced in September 2014, was contingent on the Mineral Resources Authority (MRA) of Papua New Guinea (PNG) renewing tenements in favour of Pacific Kanon, Trigold said in an announcement.
At the time the deal was signed, TriGold said it expected to receive renewal of the permits and MRA approval by 31 October of that year.
“The MRA did not grant tenement renewals and as a result the vendor could not confirm legal ownership of the projects to be conveyed pursuant to the SPA,” the company said in its March announcement.
“Although the underlying assets and terms of the transaction represented an exceptional value proposition for Trigold shareholders, PNG’s lengthy tenement renewal process and inconsistent regulation proved unreliable, which has led Trigold, among others, to refocus its considerable efforts in other jurisdictions.”
The company had paid C$35,000 in cash upon signing a Letter of Intent for legal and PNG regulatory matters, but no subsequent cash or share payments had been made.
“Over the past twelve months, Trigold has evaluated and negotiated numerous other investment opportunities worldwide and will continue to do so with the intent to acquire outstanding mineral interests while maintaining a tight share structure and reduced operating costs in the best interests of shareholders.”
The deal would have seen TriGold acquire Vangold for 1.3 million shares and C$72,000.
Vangold’s tenements comprise the Mt.Penck, Allemata and Fergusson gold-copper-silver projects, which cover 101,400 hectares, 15,000 hectares and 11,594 hectares respectively.
All the projects are located in the low lands. The Mt. Penck Project is located on New Britain Island and access is by all season road from the provincial capital of Kimbe.
Allemata is easily accessible by a 20 km all-weather road from the port and provincial capital of Alotau.
The Fergusson project is located in the D’Entrecasteaux Islands, with access by boat from Alotau on the nearby mainland or by fixed wing aircraft. All the projects have reasonable access and active small scale artisanal mining.
Mt. Penck is the most advanced Project where historic drilling consisted of 93 drill holes totalling 8,500 metres that were completed within the licence area.