Singapore based entertainment company, LifeBrandz, is pulling out of its planned purchase of Tolokuma gold mine in Papua New Guinea.The PNG government controversially sold Tolokuma to Singaporean financial speculator Philip Soh Sai Kiang, for around K80 million, in November 2015.
Philip Soh Sai Kiang (also known as Soh Sai Kiang, Mr Soh and Mr Kiang), was inline to make a windfall profit of around K590 million from the proposed sale to LifeBrandz – Govt needs to explain huge difference in mine sale prices – but now he will be searching for a new buyer.
LifeBrandz decision is more egg on the face for Mining Minister Byron Chan who described Asidokona Resources, the front company Kiang used to but Tolokuma, as “reputable, committed, has integrity and capacity”, when it purchased Tolokoma – yet 12 months later the mine remains mothballed and ‘for sale’.
According to The Business Times, LIFEBRANDZ, an entertainment group, said on Thursday it will not proceed with a proposed acquisition of a company based in Papua New Guinea, and will instead try to buy a company with business in Mongolia.
It said that it will no longer acquire all the shares of Tolukuma Gold Mines, a company incorporated in Papua New Guinea, for US$212 million.
The company owns a non-operational gold mine there. Tolukuma also holds five exploration licences, and has one exploration licence under application.
Lifebrandz said that the term sheets have lapsed, and both parties have not been able to finalise the agreement.