Pacific Niugini gets approval for Nicolsons mine in Western Australia

18 January 2015 (Last Updated January 18th, 2015 18:30)

Western Australia Department of Minerals and Petroleum has approved Pacific Niugini's mining proposal and mine closure plan for the Nicolsons mine near Halls Creek.

Western Australia Department of Minerals and Petroleum has approved Pacific Niugini's mining proposal and mine closure plan for the Nicolsons mine near Halls Creek.

Approval will allow the company to recommence the project and gold production from the high-grade Nicolsons underground gold mine.

Pacific Niugini secured a financing proposal on 5 December last year from the Commonwealth Bank (CBA) in order to restart the mine.

In-line 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.

"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."

Once all conditions of the agreement are met, BNR will transfer an additional 15% ownership of the project to Pacific Niugini.

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.

Upon completion, it is expected that site works will commence in the February to March 2015 period.

Pacific Niugini managing director Paul Cmrlec said: "We have a high-grade underground gold mine with a rising gold price environment and are excited for our shareholders with the value that this development presents.

"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."

All holders are encouraged to consider the rights issue offer and further participate in the next phase of the company's growth.