Gold Anomaly has signed an agreement with Singapore-based gold investment group LionGold to fast-track development of its Papua New Guinean assets and result in first production by 2014.
LionGold will acquire up to 60% of Gold Anomaly’s PNG-based subsidiary Anomaly Ltd, which owns the Crater Mountain and Fergusson Island deposits. The two assets have a total resource estimate of more than 1 million ounces of gold.
LionGold will spend up to $8.5 million in three tranches of convertible notes for the acquisition, with the deal subject to due diligence. Gold Anomaly has agreed to provide LionGold with an exploration, development and production feasibility plan for the next three years.
The company says the funding will assist in advancing a PNG development and exploration program that aims to see mining operations begin within 15 months at the high grade zone within the Nevera deposit at Crater Mountain. An expansion of the current 790,000 ounce gold resource and further definition of the gold/copper potential at Crater Mountain is also scheduled. Further review of the near-term production potential on Fergusson Island is another of the new plan’s objectives.
Gold Anomaly’s executive chairman Greg Starr says he’s delighted the company could now advance several of its outstanding projects, and in particular Crater Mountain. “We have only begun to scratch the surface at Crater Mountain, having identified some 790,000 ounces of gold in less than 12 months of our maiden drilling program.
“This transaction will enable us to further define then commence production in the high grade zone, further define resources at Nevera, continue the hunt for the prized gold copper porphyry feeder system at depth, extend regional exploration, and transition the company to producer-status far more quicker than we had initially envisaged.
“LionGold has both a strong balance sheet, and a focus of developing Australian gold companies into near term production. We look forward to working together with LionGold to crystallise maximum value from our PNG projects,” he says.