NEWSI got answer how they are gonna repay the Convertible Note debt
due April 30, 2010. By taking a new loan :(
NGG Restructures Interest in Normanby/Imwauna
- Transfers current 50% interest in EL's 1069 and 1091 to Normanby Mining Ltd and NMC Mining Corp (Normanby) - Receives 45% interest in Normanby plus CAD $3 million loan
VANCOUVER, BRITISH COLUMBIA, Apr 20, 2010 (MARKETWIRE via COMTEX News Network) --
New Guinea Gold Corporation ("NGG" or "the Company") (TSX VENTURE: NGG)(FRANKFURT: NG8) is pleased to announce that the Company and its Papua New Guinea (PNG) subsidiary, New Guinea Gold Ltd (NGGL), have agreed to restructure the interest in the Normanby (EL 1091) and Sehulea (EL 1069) projects.
The Agreement provides as follows:
1. NGG will transfer its 50% interest in the Normanby (EL 1091) and Sehulea
(EL 1069 to Normanby Mining PNG Ltd, a subsidiary of Canadian company,
NMC Mining Corp, formerly 7238550 Canada Ltd. ( Normanby). Normanby,
currently, under an Option Agreement, can earn a further 50% interest in
EL's 1069 and 1091 after completing expenditures of CAD$8 million (see
Press Release dated February 4, 2010).
2. NGG will be issued shares in Normanby equivalent to 45% of the
outstanding capital (including the 45%) of Normanby.
3. Normanby will provide NGG with a CAD$3 million loan with interest at 8%.
The loan is repayable within 12 months, or earlier if the licenses in
respect of EL1091 and EL 1069 are renewed. Repayment is either in cash
or, at NGG's option, in NGG share units (comprising one share and one
warrant). The price of the shares will be determined by the share price
for the 5 days preceding the repayment. The warrants will be for 24
months with a strike price of 100% above the share price. In addition,
NGG will issue to Normanby 5,454,545 NGG common shares at a deemed price
of
.11 per share.
Completion of the transaction is subject to the approval of the TSX-Venture Exchange and other conditions precedent in the Agreement.
"We are pleased to have successfully achieved this re-structuring with our partners at Normanby", said Bob McNeil NGG Chairman and CEO." "The benefits of this transaction are:
1. It provides NGG with additional cash to repay the Convertible Note debt
due April 30, 2010.
2. Given the present relatively low market capitalisation of the Company,
NGG is unlikely to be able to raise the necessary substantial funds
independently, to take the Imwauna and Weioko Projects to Bankable
Feasibility. The association with Normanby is expected to provide such
funds for these important projects and also provide increased financial
credibility with the Papua New Guinea Government.
3. The association with Normanby and certain new shareholders of NGG will
bring efficiencies, financial and technical support to NGG's operations
in Canada and PNG.
4. The association will also enhance the Company's credibility in the
market and provide better and wider promotion for NGG as the Sinivit and
Imwauna projects further develop."