Trigold Resources has signed a definitive share purchase agreement with Pacific Kanon Gold Corp and 0990601 BC Ltd (Pacific Kanon’s covenantor) which will result in Trigold acquiring 100% of the shares of Vangold (PNG) Ltd.
Vangold PNG holds title to three mineral tenements in Papua New Guinea. On July 28, 2014, 0990601 acquired all of the shares of Pacific Kanon from Vangold Resources in consideration for the assumption of certain debt of Vangold PNG by 0990601.
At present, the exploration licences that comprise the PNG tenements have not been renewed for the current term. Trigold is working with applicable governmental entities in PNG and expects to receive approval of the Mineral Resources Authority of PNG for the renewal of the tenements on or before October 31, 2014. The renewal of each of the exploration licences that comprise the tenements, together with the approval of applicable governmental entities in PNG, is a condition to closing of the transaction.
The tenements comprise three separate gold-copper-silver projects - Mt Penck, Allemata and Fergusson. The projects cover 101.4sqkm, 150sqkm, and 115.94sqkm respectively, of exploration ground with considerable historical exploration. All projects are located in the low lands.
Mt Penck is on New Britain Island and access is by all season road from the provincial capital of Kimbe. Allemata is easily accessible by a 20km all-weather road from the port and provincial capital of Alotau. The Fergusson project is located in the D’Entrecasteaux Islands, with access by boat from Alotau on the nearby mainland or by fixed wing aircraft. All the projects have reasonable access and active small scale artisanal mining.
Mt Penck is the most advanced project where historic drilling consisted of 93 drill holes totalling 8500 metres that were completed within the licence area. Selected historical drill results include 133 metres @ 1.83 grams/tonne gold and 72 metres @ 1.79 grams/tonne. In addition, selected trench results include 131 metres @ 2.36 grams/tonne and 97 metres @ 3.39 grams/tonne. Although the Mt Penck project/licence area is the most advanced, both the Allemata and Fergusson projects have historical drilling and trenching.
Trigold plans to provide a technical report in respect of the Mt Penck project in support of the transaction. Trigold is a Canadian mineral exploration company headquartered in Edmonton, Canada.