PNG Gold explorer acquiredIt does happen...and may happen soon with NGG as our discoveries, production issues, increasing drilling results, low share price, unexplored acreage, etc...make this attractive for acquisition.
https://newsstore.theage.com.au/apps/previewDocument.ac?docID=GCA00961893CCI
Perth-based mining company Chrome Corporation has struck a deal to acquire PNG gold
explorer Pacific Nuigini Minerals Ltd (PNM).
The deal, which is subject to due diligence and the approval of Chrome shareholders, will
transform Chrome into a substantial gold company with almost 4,000 sqkm of highly
prospective acreage in PNG's Morobe, Western Highlands and Madang Provinces. The
PNM portfolio boasts several significant exploration projects, including the Bulolo alluvial
gold project, which is well known as the historical birthplace of Placer Dome, producing
more than 2 million ounces of gold from dredging up to the mid-1990s.
PNM is owned and managed by highly regarded technical people based in PNG with
substantial onground presence. Its owners also include the founders of gold miner
Abelle Limited, which in recent years was responsible for the huge success enjoyed at the
Wafi, Golpu and Hidden Valley Projects, leading to a takeover by Harmony Gold. As a
result of the all-scrip bid, these investors will become significant shareholders in Chrome.
PNM brings to Chrome two highly respected PNG mining executives. PNM is headed by
prominent PNG geologist David Osikore and is chaired by Bill Searson, a well-regarded
figure in the PNG resources and government sectors. PNM also has about $400,000 in
cash.
Chrome has agreed, subject to securing all the approvals, to issue to PNM shareholders
two (2) fully paid Chrome shares for every one (1) PNM share and to PNM option holders
one (1) option to acquire a Chrome share at a price of 20 cents, expiring on June 30,
2014, conditional on Chrome acquiring 100% of the shares and options on issue in PNM.
PNM has 17,950,100 shares and an equal number of 5-year 20 cent options on issue.
Chrome has agreed that on completion of the transaction, up to two nominees of PNM
may be appointed to the Chrome board. Mr Peter Cook, Chairman of Metals X Ltd and
Aragon Resources Ltd and a Director of Westgold Resources Ltd has agreed to be one of
the PNM nominees.
The deal will see the number of Chrome shares on issue rise from 167.3 million to 203.2
million, an increase of 17.67%. A general meeting of shareholders to approve the
transaction will be called as soon as possible.
Chrome believes that these quality assets in such a prospective location as PNG give it a
significant opportunity to make an advanced investment in the gold industry.
Suite B, 150 Hay Street, Subiaco, Western Australia 6008
Phone: (618) 9388 8430 Facsimile: (618) 9388 8450