New Guinea Gold to gain from Canadian deal

NEW Guinea Gold’s joint venture partner at Normanby and Sehulea, NMC Mining, will be acquired by International Silver Ridge Resources.

Last year, NGG entered an agreement with NMC whereby NMC purchased 50% of the Normanby and Sehulea properties for a part consideration of more than 15.6 million NMC shares.

Silver Ridge will acquire all the issued and outstanding common shares in NMC in exchange for common shares in Silver Ridge on a one-for-one basis.

Acting chief executive of NGG Bob McNeil said not only did NGG stand to gain from the acquisition, but NMC had also started an active exploration and development program at the mines.

"This is a very significant event - NMC is now conducting a very active exploration/development program to define resources at both properties, and to advance Normanby (Imwauna) to feasibility status by April 2012," he said.

"The trading of Silver Ridge places a significant theoretical value on NGG's shares in NMC, provided the business combination is completed as expected."

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