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TABAR ISLANDS GOLD PROJECT
On 15th of November 2004 Allied Gold Limited (Allied) entered into an agreement with Simberi Gold Corporation (“SGC”) to acquire its interests in the Tabar Islands Gold Project in eastern PNG.
Under the terms of the Agreement Allied moved to an 87.5% interest in the Simberi Mining Joint Venture (ML136) on Simberi Island and a 100% interest in EL 609 which covers the remainder of the Tabar Island Group outside of ML 136.
Consideration for the acquisition was payment of C$4.0 million by Allied to SGC, which occurred during April 2005. Further to the Agreement, SGC retained a 12.5% free carried interest (“FCI”) in the Simberi Mining Joint Venture through to the earlier of a decision to mine or 31 December 2009, at which point the FCI would be converted into Allied shares at a minimum price of A$0.50 per share. The value of the conversion was to be based upon a Net Present Value calculated from the bankable feasibility study at the time of making the decision to mine.
In October 2005, Agreement was reached with SGC for Allied to purchase the outstanding 12.5% FCI in the Simberi Oxide Gold Project.
The purchase was satisfied by;
- Payment of C$200,000 to SGC or its nominee,
- The issue of two million fully paid Shares of Allied to SGC or its nominee,
- The issue of two million Allied Options exercisable at 25 cents on or before 31 December 2006 to SGC or its nominee,
- The issue of two million Allied Options exercisable at 50 cents on or before 31 December 2008 to SGC or its nominee, SGC has agreed to voluntary escrow on a portion of the fully paid Shares issued, viz;
- 500,000 Shares for a period of 3 months from the Settlement Date,
- 1,000,000 Shares (including the above shares) for a period of 6 months from the Settlement Date.
| This final rationalisation of the previous Simberi Mining and Tabar Exploration Joint Ventures now enables Allied to press ahead with the development plans for the Simberi Oxide Gold Project as sole owner and operator. |
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