Coppermoly will begin exclusive negotiations with Barrick PNG Exploration regarding three West New Britain tenements. The two companies are partners in the Simuku, Nakru and Talelumas tenements, and Coppermoly is seeking to restore its ownership of the project to 100%.
Since 2009 Barrick has spent more than Aus$22 million on exploration on the West New Britain projects to acquire a 72% interest in the three tenements. Odyssey Capital Partners has been mandated to act as an advisor in a bid to restore 100% ownership of the tenements to Coppermoly, after Barrick decided to sell its stake.
The company’s managing director Peter Swiridiuk says the agreement allows for a reasonable period of exclusivity which Coppermoly believes is sufficient for it to agree terms, arrange finance, prepare formal sales documentation and achieve completion.
“If, for some reason, the completion of the proposed transaction does not eventuate, the existing agreement between the two companies will remain unchanged. This means none of the company’s existing rights will be foregone,” he says.
Nakru-1 is the most advanced of Coppermoly’s three projects within the region, about 50km south of the port of Kimbe. It is in central New Britain Island and has a maiden inferred resource of 38.4 million tonnes @ 0.61% copper, 0.29 grams/tonne gold and 1.8 grams/tonne silver.
Simuku has an inferred resource of 200 million tonnes @ 0.36% copper, 61 ppm molybdenum, 0.06 grams/tonne gold and 2 grams/tonne silver. Coppermoly has also been granted an exploration licence for the 280sqkm Makmak tenement nearby and has applied for two additional tenements within the same region.