13 Mar Sale of Wamum and exit from Manus Island
SALE OF WAMUM AND EXIT FROM MANUS ISLAND
Sale of stake in Wamum Project
The Company previously announced that it had agreed, subject to contract, to sell its 12.14% contributing interest in the Wamum project in Papua New Guinea for US $ 750,000, payable in cash. One of the conditions to signing the contract was that a subsidiary of Barrick Gold Corporation (“Barrick”) completed its negotiations for selling its 87.86% interest in the Wamum project to the same party.
AuM today announces that a contract to effect that sale has been signed by its subsidiary Terenure Limited with a subsidiary of Newcrest Mining Limited (“Newcrest”). A contract for the sale of Barrick’s 87.86% interest in the Wamum project has also been signed.
The contract between Terenure and Newcrest is conditional on the Papua New Guinea authorities approving the transfers, and completion of the sale of Barrick’s interest to Newcrest. It will take some months before these conditions are met, and before AuM receives the US$750,000 payable pursuant to the contract.
Exit from Manus Island Project
The Company also announces that it is exiting its other Papua New Guinea project at Manus Island.
Following the previously announced withdrawal of the joint venture manager, Newcrest, from the project, the Company sought an investor to purchase or earn in to the project. Several investors showed initial interest, but only one pursued discussions to an advanced stage. That investor has now informed Aurasian that it has decided not to proceed.
The other two joint venture partners, Golden Success Ltd and Redcliffe Resources, have confirmed to AuM that they cannot 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. The Board believes that there are no financial or other penalties to AuM as a consequence of such relinquishment.
Following the sale of the Company’s interest in the Wamum project and the relinquishment of the Manus Island project, AuM’s only remaining interest in Papua New Guinea will be its 3% Net Smelter Royalty from the Morobe project which is now controlled by a subsidiary of Niuminco Group Ltd.
The Company also holds a contractual 10% undilutable carried interest in its former Vietnamese project at Pu Sam Cap, through to the commencement of commercial production
As announced on 12th January 2015, the Company continues to focus its efforts and resources on exploration in South-East Asia, and in particular in Myanmar and Lao PDR.
Chairman Tony Shearer said:
“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. It will take some months for the necessary approvals to be obtained from the PNG authorities and for the cash to be paid. When it arrives, it will be a useful contribution to the Company’s coffers as the new management team seeks additional opportunities in South-East Asia.”
Aurasian Minerals Plc
Tony Shearer Tony.email@example.com
finnCap Limited – nominated adviser
Christopher Raggett +44 (0) 20 7220 0500