- Tempest Minerals (TEM) is set to acquire Papua New Guinea company, Lole Mining, for $25.7 million
- Lole Mining has the rights to three gold, silver and copper projects in PNG including the Tolukuma mine, the Tolukuma exploration area and the Mt Penck project
- Tolukuma has a history of producing high grade gold and silver, while Mt Penck, historically showed positive results with surface sampling, but never proceeded with follow-up drilling
- Tempest says this acquisition is a “transformative deal” which will help the company become a gold developer
- TEM shares are up 30.8 per cent, trading at 5.1 cents at 2:15 pm AEST
Tempest Minerals (TEM) has entered into a conditional agreement with Lole Mining, to purchase the company and all its assets for around $25.7 million.
Lole Mining is an unlisted public Papua New Guinea-based company which is registered in Australia, with the rights to three gold, silver and copper projects in PNG.
This consists of both the Tolukuma mine and Tolukuma exploration area and the Mt Penck project.
Tolukuma mine is roughly 100 kilometres north of Port Moresby and sits within the Owen Stanley Metamorphic Complex, part of the greater PNG metallogenic belt which hosts a number of world class major deposits.
Tolukuma has a history of producing high grade gold and silver with the project producing one million ounces of gold and 2.4 million ounces of silver since it began in 1995.
The Mt Penck project, which is in the West New Britain province of PNG, has mineralisation classified as a high sulphidation epithermal system. The company said previous exploration at the project was successful, including by BHP and Placer.
Previous surface sampling uncovered positive results such as rock chips with up to 49.9 grams of gold per tonne (g/t), however follow-up drilling never went ahead after the project was relinquished during the BHP/Newmont consolidation into Newcrest.
No exploration has been done since 2011.
Tempest said this acquisition is a “transformative deal” which will help the company become a gold developer.
The deal consists of a multi-stage transaction where Tempest will amalgamate with Lole, and is subject to a number of conditions, including due diligence, shareholder approval and a capital raising to support the transaction.
Tempest Managing Director Don Smith said this is a “major milestone” development for the company and its shareholders.
“In line with the company strategy of sustainable discovery and development, we are pushing full steam ahead with our exploration fronts at the Meleya and other Yalgoo regional projects in Western Australia,” Mr Smith said.
“At the same time we have identified this fantastic opportunity to drive growth by positioning ourselves as a near term gold producer with associated revenue stream and by adding high potential exploration ground to the portfolio.”
TEM shares were up 30.8 per cent, trading at 5.1 cents at 2:15 pm AEST.