13th Mar 2015 08:26
LONDON (Alliance News) - Aurasian Minerals PLC Friday said it has agreed to sell its interest in the Wamum project in Papua New Guinea for USD750,000 to Newcrest Mining Ltd, but also said it has surrendered its other project in the country to the government after failing to secure an investor.
The miner said it has agreed to sell its 12.14% stake in the Wamum project to Newcrest, and said the deal was under the condition that a subsidiary of Barrick Gold Corp also sold its stake in the project to Newcrest.
Aurasian said Barrick agreed to sell its 87.86% stake in the Wamum project to Newcrest prior to the deal.
The deal is conditional on the Papua New Guinea authorities approving the transfers, and completion of the sale of Barrick's interest to Newcrest. Aurasian said it will take months before the conditions are met, and before it will receive the USD750,000.
In addition, Aurasian said it is also exiting from its other project in Papua New Guinea at Manus Island after surrendering the project to the government.
Aurasian had been looking for an investor to either purchase or earn in on the project, but said only one party reached the advanced stages of talks, and has now decided not to proceed with the deal.
Aurasian said its existing joint venture partners on the project, Golden Success Ltd and Redcliffe Resources, have also said they can not take on the project.
"So, the company has informed the Papua New Guinea government on behalf of the joint venture that it is relinquishing the project," said Aurasian.
The company said it is not expecting any financial penalties for surrendering the project.
"It is obviously disappointing that we have been unable to continue the project at Manus Island. However I am delighted that we have finally signed the Wamum agreement," said Chairman Tony Shearer.
Aurasian shares were up 13% to 0.338 pence per share on Friday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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