Wow- we just gave away half the crown jewel (ImwauNew Guinea Gold grants option to earn 50%interest in the Normanby/Imwauna property for $2 million plus$5,000,000 exploration committment
- Press Release
- Source: New Guinea Gold Corporation
- On Wednesday September 16, 2009, 1:19 pm EDT
<<Trading Symbols: TSX-V: NGGFrankfurt: NG8.FSE>>
VANCOUVER, Sept. 16 /CNW/ - (All dollars Canadian dollars) New GuineaGold Corporation - NGG:TSXV ("NGG or the Company") announces that it hasentered into an Option Agreement on September 14, 2009 with a Private Company7238550 Canada Ltd (the "Optionee"). The Option provides the Optionee theright to acquire a 50% legal and beneficial interest in the Normanby's (EL1091) Imwauna property for a series of cash payments totaling $1 million, plusthe purchase by way of Private Placement of $1 million worth of New GuineaGold common shares. In addition, the Optionee must complete explorationexpenditures totaling a minimum of $5 million over two years.
The Imwauna Project is on Normanby Island in Milne Bay Province, PapuaNew Guinea. It has been previously reported that the present Inferred Resourceis 1.8Mt at 12.2g/t gold and 20g/t silver for 706,000 ozs gold and 1,160,000ozs silver. The mineralization is "free milling", not refractory, andcommences at surface. This Inferred Resource was noted in a Press Releasedated June 12, 2008.
An Independent Technical Report titled "Independent Resource Report onthe Imwauna Prospect, Normanby Property - Milne Bay Province, Papua NewGuinea" prepared by Ralph N. Stagg of Project Geoscience Pty Ltd" was filed onSedar and at www.newguineagold.ca on July 10, 2008. This report was preparedfollowing the format and guidelines of Form 43-101 F1, Technical Report forNational Instrument 43-101 Standards of Disclosure for Mineral Projects andCompanies Policy 43-101 CP as amended on December 23, 2005.
The principal author, Ralph Stagg B Sc, M Sc, DIC, FAusIMM, MIMMM, E Eng.Is a "qualified person" and is independent of NGG.
Bob McNeil, Chairman and CEO commented: "We are pleased that thistransaction provides for the expeditious development of the Imwauna property,without further immediate spending by NGG. It provides NGG with significantupside in that NGG will retain a 50% interest in the Imwauna property, whileenabling the Company to focus on process and mining improvements and furtherexploration at Sinivit, as well as exploration at our other key project,Weioko."
The Option Agreement calls for an immediate cash down payment of $50,000by the Optionee, a further payment of $200,000 upon receipt of writtenconfirmation from the Government of Papua New Guinea that it requires onlycompletion of a Preliminary Assessment on Imwauna at this stage ofdevelopment, and a final payment of $750,000 on the completion of a $5,000,000financing by the Optionee, by December 31, 2009. This date may be extended iftimely approval from the Papua New Guinea Government is not received. On orbefore the financing completion, the Optionee will purchase $1 million of NewGuinea Gold common stock at a 10% discount to market at the time thetransaction is announced.