- RTG Mining (RTG) to acquire an 80 per cent interest in Mt Kare Gold Project in Papua New Guinea for approximately $27 million
- The project has had in excess of $60 million spent on it by several companies
- RTG said it is not currently able to verify, revise or update the historical mineral resource for Mt Kare, however, it belives the mine has significant upside potential
- RTG is up 10 per cent on the market today and is selling shares for 8.8¢ per share
RTG Mining (RTG) to acquire an 80 per cent interest in Mt Kare Gold Project in Papua New Guinea (PNG) for approximately $27 million.
The current owners of Mt Kare are GMG Global Mining and Tribune Mt. Kare.
Mt Kare has a historical mineral resource of 2.1 million ounces, which includes
measured mineral resources of 1.2 million ounces of gold and indicated and inferred mineral resources of 0.9 million ounces of gold.
The junior explorer will pay approximately US$8.80 per ounce of gold in total historical mineral resource for the project, meaning the deal will be worth $27.06 million (US$18.48 million).
An additional payment is US$2.40 per ounce of gold in a historic mineral resource is payable upon a decision to mine.
Mt Kare is located approximately 600 kilometres northwest of Port Moresby. It is also near the second largest mine in PNG and in the worlds top 10 producing gold mine, Barrick’s Porgera.
The project has had in excess of $60 million spent on it by several companies.
RTG said it is not currently able to verify, revise or update the historical mineral resource for Mt Kare, however, it belives the mine has significant upside potential.
RTG is up 10 per cent on the market today and is selling shares for 8.8¢ per share at 2:57 pm AEDT.