NEW Guinea Gold (NGG) has completed ownership of the mining and access leases, including the exploration licence at the Sinivit project in East New Britain.
Director Greg Heaney said in a statement: “The company (NGG) has reached agreement in principle to acquire the outstanding ordinary shares in Gold Mines of New Guinea Holdings Ltd.
“This will mean NGG has title to 100% of the mining lease, associated access leases and the exploration licence.
“There are conditions precedents to the completion of the transaction.
“This will simplify the operational environment and allow any future transactions to be completed within a far simpler framework”.
Beginning mining in 2007, NGG’s site operations remained limited to leaching previously mined ore.
The junior explorer and miner said its site staff were working on finalising the feasibility study and associated operational plans for phase II mining and processing.
A judgment was handed down in favour of the plaintiffs in relation to a court case in which NGG was a joint respondent.
Heaney explained that the issue was the process undertaken by the Mineral Resources Authority for the renewal of the mining lease.
“The judgment means that the renewal process may need to be conducted again.
“All of the parties involved are committed to expediting this process if necessary, however the parties are endeavouring to settle the matter between themselves.
“The board and executives are still progressing discussions with several potential counter-parties to complete a transaction that will maximise value to shareholders and secure the future of the Sinivit mine and associated exploration licences.
“The company will update shareholders on the status of these discussions as they progress, “he said.
NGG was actively seeking to expand production through extension of known mineralisation and further discovery.