Coppermoly Limited (ASX:COY), “the Company” has reached an agreement to enter into exclusive negotiations with Barrick (PNG Exploration) Ltd (“Barrick”) regarding a proposed transaction in relation to the Company potentially acquiring Barrick’s interest in the West New Britain Project tenements (EL1077 Simuku, EL1043 Nakru and EL1445 Talelumas) in Papua New Guinea.
The Company and Barrick are partners in the West New Britain Project tenements and if a transaction can be completed, the Company would restore its 100% ownership of those tenements.The agreement allows for a reasonable period of exclusivity which the Company believes is sufficient for it to agree terms, arrange finance, prepare formal sales documentation and achieve completion.
In the absence of the completion of any proposed transaction, the existing Letter Agreement between the Company and Barrick will remain unchanged (i.e.; none of the Company’s existing rights have been foregone).
Since 2009 Barrick has spent over AUD$22 million on exploration on these West New Britain projects to acquire a 72% interest in the three tenements. Odyssey Capital Partners have been mandated to act as an advisor to restoring 100% ownership of the West New Britain Project tenements.
