PANAUST MOVES INTO PNG

Written on the 1 November 2013

PANAUST MOVES INTO PNG

Brisbane-based company PanAust Limited (PNA) will acquire Glencore Xstrata’s 80 per cent stake in the Frieda River Project in Papua New Guinea.

Glencore will gain US$75 million from the acquisition of the project which concerns one of the largest undeveloped copper and gold deposits in the world.

The sale amount will be paid over two instalments, with the first instalment of US$25 million upon transaction close and the second paid on December 31 2015.

Glencore will also take a two per cent net smelter return royalty on PanAust’s interest in the project to a total of US$50 million.

“The transaction delivers PanAust access to a truly world class copper gold deposit that provides the basis for sustainable long-term growth of the business,” says PanAust managing director Gary Stafford.

In addition to the purchase agreement, PanAust will become a cornerstone shareholder in Highlands Pacific Limited, which holds the remaining 20 per cent interest in the project.

The company will take an initial placement of Highland’s ordinary shares equating to 7.5 per cent of the issued share capital.

The share agreement is in line with PanAust’s strategy to ensure access to sufficient mineralisation beyond its Phu Kham Operation in Laos.

“It gives us additional options within the asset portfolio and the opportunity to leverage our experience as a successful project developer in Laos, where the terrain has a number of similarities to the area around Frieda River,” says Stafford.

PanAust’s development concept for the Frieda River will likely coincide with rising production levels scheduled for Phu Kham.

PanAust shares were three cents lower at $1.99 following the announcement.


Latest News

CROMWELL TRADES STEADILY IN FIRST HALF

CROMWELL Property Group has maintained a steady operating profit at $0.045 per security in the first half of FY17,...

WHY NEXTDC'S STOCK IS SOARING

AFTER posting its interim result, NEXTDC (ASX: NXT) gained more than 12 per cent on the stock market before noon.
...

PWR PROFIT CRASHES AS DOLLAR RISES AND COSTS MOUNT

A RISING Aussie dollar has offset PWR Holdings Limited's (ASX:PWH) overseas growth in the last half, forcing a...

SUPER RETAIL GROUP RESULTS SHINE ACROSS THE BOARD

A WELL-planned and executed half has paid off for Super Retail Group (ASX:SUL) as it posts a net profit result up ...

Related News

EVERYTHING YOU NEED TO KNOW ABOUT THE NATIONAL BROADBAND NETWORK

THE National Broadband Network (NBN) is more than an internet connection, it is an opportunity to transform your b...

WHY EMPLOYEE-OWNED COMPANIES ARE BEATING ASX200 SHARE PRICES

EMPLOYEE-owned companies command a higher share price than their publicly listed peers, reaping a 17 per cent prem...

RISE OF THE MACHINES HAS WORKERS SWEATING

UP TO 3.8 million Australian workers are fearful their job may soon be terminated by a robot, a new survey has shown....

LESS TALK, MORE SMALL BUSINESS ACTION IN 2017

THE future growth and prosperity of Australian SMEs could be undermined if governments lose sight of the sector...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter