The business combination between International Silver Ridge Resources and NMC Mining Corp has been finalized, resulting in the formation of PNG Gold Corporation.
On August 26, 2010, Silver Ridge and NMC announced that they had entered into an agreement providing for the acquisition by Silver Ridge of NMC, a private company existing under the federal laws of Canada.
Silver Ridge has obtained the written consent of the majority of its shareholders to the business combination in accordance with the rules of the TSX Venture Exchange.
Pursuant to the agreement, Silver Ridge’s wholly-owned subsidiary, 7595158 Canada Ltd has amalgamated with NMC. The amalgamated company has become a wholly-owned subsidiary of Silver Ridge.
In connection with the completion of the business combination, Silver Ridge has changed its name to PNG Gold Corporation. Through NMC, PNG Gold holds a 50% interest in the Normanby and Sehulea Properties in Papua New Guinea, and an option to acquire the remaining 50%. NMC’s Normanby property is the focus of exploration efforts.
JRH (Dick) Whittington has been appointed president and chief executive officer while Colin McKenzie has been appointed chief operating officer of PNG Gold. The business combination has also resulted in PNG Gold holding about 20.59% of New Guinea Gold Corp.
At the Imwauna project on Normanby Island, exploration drilling resumed in January 2011 and is anticipated to continue throughout the year. The current phase of drilling is designed to provide in-fill drilling on the deposit as well as test the extension of the known mineralization below 100 metres from surface. At the end of May, about 50% of the 6500 metre program had been completed.
Phase II will begin immediately after phase I and will test the extensions of the known mineralization along strike, as well as conducting further infill drilling and continuing to explore at depth.
A comprehensive underground exploration program is to be initiated to confirm the grade, continuity and mineability of the Imwauna deposit. The underground program will allow for test mining of the vein between two levels and set up drill stations in hanging wall drifts for definition drilling of the deposit. It is also planned to extract a 5000 tonne bulk sample for metallurgical testing.
PNG Gold’s intention is to rapidly advance the Imwauna property to a production decision.