PNG government might pick up stake in gold project
Papua New Guinea’s Minister for Mining has this week written to Australian Stock Exchange listed Kula Gold indicating that the PNG government might take up an equity stake in the proposed Woodlark Island Gold Project in the country.<!--more-->
PNG’s state-owned Petromin PNG Holdings has been nominated to participate in the project. But whether or not the government would participate in the project would hinge on Petromin’s technical and financial review of the project and subject to the raising of necessary financing requirements.
The government’s interest in acquiring equity is further to the conditions of the exploration licence, which confers on the PNG government the right to buy up to a 30% equity interest in any mineral discovery arising from the licence.
Kula Gold, through its subsidiary Woodlark Mining, holds exploration tenements covering some 450 square kilometres in areas with good prospects for the mineralisation of gold bearing ore. A feasibility study into the development of a 1.5-million-ton-a-year processing plant, with the capacity to be upgraded to 2.6-million tons a year is now under way.