The Western Australia Department of Minerals and Petroleum (WADMP) has approved Pacific Niugini‘s mining proposal and mine closure plan for the Nicolsons mine near Halls Creek.
The company can now recommence the project and continue with gold production from the high-grade Nicolsons underground gold mine.
“We now have a clear path to commencing site works with key project personnel in place. We have a high-grade underground gold mine with a rising fold price environment and are excited for our shareholders with the value that this development presents,” said Pacific Niugini’s Managing Director Paul Cmrlec.
“We await the successful completion of our rights issue and the start-up of what we believe will be a rewarding and transitioning step for the Company as we enter the ranks of a gold producer.”
Pacific Niugini secured a financing proposal on 5 December last year from the Commonwealth Bank (CBA) in order to restart the mine.
In accordance with the Heads of Agreement announced on 8 December, Pacific Niugini is assisting Bulletin Resources (BNR) with obtaining finance for its share of the project in WA.
BNR will transfer an additional 15% ownership of the project to Pacific Niugini once the conditions are met.
In order to cover its share of funding and enable draw-down of the proposed CBA debt facilities, the company is undertaking a rights issue at present.
On-site work is expected to begin in the February/March 2015 period.
“The board encourages all holders to consider the rights issue offer and further participate in this exciting phase of the Company’s growth. The closing date for rights issue was extended due to festive season delays and will now close on 28 January 2015. The Board has reserved the right to place any shortfall and pay fees to brokers who do so,” reads the company’s announcement.