A major Hong Kong-based investor has signed on to inject $700,000 into Gold Anomaly in return for 280-million ordinary shares. Freefire Technology will also provide a loan of $1.3 million to Gold Anomaly to assist with its study of the potential of near-term production commencing at the high grade Artisanal Mining Zone at the Crater Mountain deposit.
The company says the money will also pay for an airborne geophysical study over Crater Mountain to further identify the regional potential and to consider appropriate joint venture partners to enhance the development of the Crater and Croydon projects while also repaying the Bergen loan facility.
Gold Anomaly’s executive chairman Greg Starr says, “With Freefire Technology as a cornerstone investor in the company, management can now continue to focus on advancing its projects rather than finding sources of funds so as to reflect the true potential value of the projects in our share price. As a result we expect shareholders will see the benefit of Freefire's investment in the short term.”
The company’s flagship asset is the Crater Mountain gold project which has the potential to become a multi-million ounce gold deposit. Crater Mountain takes in three exploration licences in the PNG Highlands, about 50km southwest of Goroka which is the regional centre for Eastern Highlands province. It is a joint venture between Gold Anomaly and London-based Triple Plate Junction.
Crater Mountain has been actively explored for more than 30 years for epithermal gold mineralization. These past efforts defined four main prospects - Nevera, Nimi, Awanita and Masi. Despite efforts from the company and the PNG government, the Nevera soil anomaly continues to be mined by artisanal miners who have reportedly recovered 250kg of gold in shallow underground workings during the past five years.