Wednesday, May 25, 2011

Aussie miner eyes PNG prospects


WESTERN Australian nickel miner, Mincor, has sought to expand its geographic footprint and diversify its operations with A$30 million (K77 million) deal targeting gold and copper in Papua New Guinea, The Western Australian newspaper reported yesterday, The National reports.

Under the terms of the deal with PNG-focused, unlisted explorer Niuminco, Mincor will spend A$15 million in exploration at the Eddie Creek gold project to earn a 51%  interest and a further A$15 million (K38.5 million) to earn up to s 72 % interest in three exploration licences in the country.

The Eddie Creek pro­ject is located between gold fields of giant Hidden Valley and Wafi-Golpu mines currently under development by Morobe Mining Joint-Venture.

Mincor may also subscribe for A$5 million (K12.5 million) worth of shares as part of a capital raising by DSF International Holdings, which is buying out Niuminco.

DSF is an Australian security exchange-listed company which has been suspended from trading.

The new listed entity will be renamed Niuminco.

"The A$30 million transaction represents the most significant new business development initiative undertaken by Mincor since its successful acquisition of the Otter Juan nickel mine in 2007," Mincor said in a statement.

Mincor managing director David Moore said the venture would offer the company some of the best prospects in PNG for world-class deposits.

He said Mincor had established a strong rapport with Niuminco/DSF, and believed that their extensive experience in PNG would be of great value to the joint venture in the years to come.

Mincor shares closed A$0.04 or 3.33% lower to A$1.01 at the end of trading yesterday.

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