Gold Anomaly’s major shareholder FreeFire Technology has agreed to underwrite a $6.9 million renounceable rights issue and an immediate $1.5 million bridging loan for the ongoing exploration and potential trial mining of the Crater Mountain project in the eastern highlands. The exploration will focus on drilling the project’s high grade and main zones.
As a result of the commitment from FreeFire, Gold Anomaly invited director Sam Chan to become chairman of the company. “I am pleased to have been invited to chair a company with such a robust outlook and wealth of management expertise. The financing will enable Gold Anomaly to focus on further exploration and development of the Crater Mountain High Grade Zone and potentially continue ongoing drilling at the Crater Mountain Mixing Zone on a self-financing basis. I look forward to seeing Crater Mountain becoming the next large gold development in PNG,” says Sam Chan.
The Crater Mountain gold and copper project hosts an inferred 790,000 ounces of gold in the Mixing Zone, where drilling will begin later this year. It is estimated that there could be some 100,000 ounces of gold in the fractures and ore shoots which are known to extend 100 metres from surface and potentially extend many hundreds of metres to the underlying magmatic source identified during the nearby drilling of the Mixing and Porphyry Zones.
“Funds raised by the rights issue will enable the company to commence exploration and trial mining with the view of ultimately larger full-scale production. However, the potential quantity of gold estimated to be present in the High Grade Zone is conceptual in nature and it is uncertain if further exploration will result in the determination of a mineral resource,” says Sam Chan.
Other changes to the management team include Greg Starr being appointed managing director and professional company director Russell Parker joining the Board. James Collins-Taylor and Sinton Spence have resigned as directors of the company. Gold Anomaly’s Board of Directors has paid tribute to the two men who made significant contributions to the company.