Why is Australian mini mining company Highlands Pacific putting out statements about events that occurred over 6 months ago and were reported on at the time?
Not the first time we have seen HP engage in some dodgy practices…
PanAust to get 80% interest in Frieda River Copper Gold project
Ian Hetri | PNG Loop
It was revealed today in a statement released by Highlands Pacific that on 1 November 2013, PanAust Limited (PanAust) had announced that it had entered into a share sale and purchase agreement with a subsidiary of Glencore.
The intention was for PanAust to acquire an 80% interest in the Frieda River Copper Gold project in Papua New Guinea.
It was noted in the statement that the PanAust-Glencore agreement is subject to a condition relating to all applicable regulatory approvals.
“These approvals include Glencore’s satisfaction of the conditional approval given by the Ministry of Commerce, People’s Republic of China to the merger between Glencore International and Xstrata and the approval of the Investment Promotion Authority of Papua New Guinea,” the statement says.
It is also reported that on 1 November 2013 PanAust and Highlands Pacific announced that they had entered into an agreement, subject to the completion of the PanAust-Glencore agreement, providing the framework for the future relationship between the parties in relation to further equity support and the Frieda River Joint Venture.
Highlands Pacific says that on completion of the PanAust-Glencore agreement, for a period of 90 days PanAust will have the right to subscribe to a placement of AU$5 million at the issue price of AU7.76 cents a share.
Highlands will also have the option of requiring PanAust to subscribe to this placement for the same 90 day period.
“PanAust and Highlands have agreed that the two parties will hold interests of 80% and 20% respectively in the Frieda River Joint Venture on completion of the PanAust Glencore agreement.
“The terms of the agreement between PanAust and Highlands provide that should the Government of PNG elect to take up its right under PNG Law to 30% of the project, PanAust will sell down the first 20% of its joint venture interest and thereafter the parties will sell down in equal amounts. Under a scenario where the Government of PNG elects to take up its maximum 30% of the project, the respective joint venture interests would be PanAust 55%, the Government of PNG 30% and Highlands 15%
“PanAust is responsible for 100% of the costs incurred by the Frieda River Joint Venture to finalise the definitive feasibility study for PanAust’s development concept and will appoint and fund the cost of an independent expert to provide a peer review,” the statement reveals.
It is also reported that PanAust will be responsible for 100% of the costs to maintain the Frieda River project site, assets and community relations programs up to the point in time of lodgement of the Mining Lease or Special Mining Lease application.
Frieda River boasts largest copper-gold deposit in PNG
Ian Hetri | PNG Loop
The Frieda River district endowment totals some 2.8 billion tonnes of resource containing 12.9 metric tonnes of copper and 20.4 million ounces of gold according to a statement released by Highlands Pacific today.
The large amount of copper and gold deposits found in Frieda River makes the Frieda River Project PNG’s largest and most important copper-gold project.
According to the statement released today, most studies to date have focused only on the three deposits Horse, Ivaal and Trukai; estimated to contain 2,090 million tonnes at a grade of 0.45% copper, 0.22g/t gold and 0.70g/t silver.
As part of PanAust’s due diligence work, it completed a scoping study based on a smaller circa 24 million tonne per year conventional open pit and flotation operation producing a copper-gold concentrate for export to custom smelters.
“The scale of development is significantly more manageable in the current market environment than the previous design given PanAust’s estimate of development capital in the range of US$1.5 billion to US$1.8 billion (100% basis, 2013 dollars).
“This would equate to a capital intensity of less than US$13,000/t of annual copper equivalent production,” the statement highlights.