WCB Resources has obtained the initial 30% interest in the Misima Island Project with the stake now being registered. The company is now progressing with the next Aus$3 million stage of the farm-in agreement, which will result in it obtaining an additional 19%.
The company has entered into a sale & farm-in agreement with Pan Pacific Copper (PPC) covering the exploration licence on Misima Island. PPC owns Gallipoli Exploration (PNG) Ltd, which is the owner of the granted licence.
PPC is owned by JX Nippon Mining and Metals (66%) and Mitsui Mining and Smelting (34%). PPC is a global mining, smelting, refining and international copper producer, currently developing the Caserones Copper Project in Chile.
Under the terms and conditions of the agreement, WCB, through its wholly-owned subsidiary WCB Pacific, can obtain up to a 70% interest in the licence by spending a total of Aus$9 million within a 4-year timeframe as follows:
WCB’s president and CEO Cameron Switzer says, “WCB continues to move forward now having a recognized equity interest in the Misima Island project. It is the belief from both the management and Board that this project will underpin the future growth and aspirations of the company as each phase of exploration activity continues to upgrade the project potential.
“Furthermore, we are well progressed to earning the next 19% interest in the project with our 2014 scout drill program which will be testing an outstanding tier 1 porphyry copper-gold-silver target. WCB is steering itself towards an exciting growth phase.”
The Misima Island project is in the same terrain and geological region that includes the giant deposits of Grasberg, Ok Tedi, Wafi-Golpu, Lihir and Panguna. Past production on Misima Island totals 4 million ounces of gold and 20 million ounces of silver. A current mineral resource of 1.57 million ounces of gold and 8.5 million ounces of silver was recently defined.