Agreement over Nicolsons funding

PACIFIC NIUGINI and Bulletin Resources have reached an agreement that will help secure funding for the Nicolsons gold project 35km southwest of Halls Creek in Western Australia.
Agreement over Nicolsons funding Agreement over Nicolsons funding Agreement over Nicolsons funding Agreement over Nicolsons funding Agreement over Nicolsons funding

Under the heads of agreement, Pacific Niugini will seek to assist Bulletin by securing 100% of the financial requirements for the project and extend the same terms to the Bulletin.

Bulletin will then contribute their equity share to financing repayments, hedging requirements and their share of any equity required to be spent before drawing on loan funds.

They will then transfer a 15% interest in the project to Pacific Niugini (increasing its ownership to 80%) once a binding agreement has been executed.

Pacific Niugini will continue its sole funding of the project until January 1 next year and will not be required to sole fund the first $4 million expenditure prior to earning 80% interest and bring Bulletin's cost contribution date forward; Bulletin will then contribute pro-rata costs (20% interest).

Bulletin will also be able to find alternative sources of funding and the terms of the acquisition agreement, in which PNR is earning interest will remain in place before and after the binding agreement has been completed.

Managing director Paul Cmrlec said: "This agreement is a constructive and beneficial step in the development of the Nicolsons project. Pacific Niugini will realise substantial savings by bringing the contribution date of Bulletin forward and in reducing pre loan drawdown equity requirements.

"Bulletin will benefit from superior loan terms compared to those likely to be secured as a minor party. The agreement also benefits the financier by enabling full security over project tenements.

"We look forward to working with Bulletin to generate substantial value for our respective stakeholders."

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