Trading Symbols: TSX-V: NGG
VANCOUVER, Sept. 16 /CNW/ - (All dollars Canadian dollars) New Guinea Gold Corporation - NGG:TSXV ("NGG or the Company") announces that it has entered into an Option Agreement on September 14, 2009 with a Private Company 7238550 Canada Ltd (the "Optionee"). The Option provides the Optionee the right to acquire a 50% legal and beneficial interest in the Normanby's (EL 1091) Imwauna property for a series of cash payments totaling $1 million, plus the purchase by way of Private Placement of $1 million worth of New Guinea Gold common shares. In addition, the Optionee must complete exploration expenditures totaling a minimum of $5 million over two years.
The Imwauna Project is on Normanby Island in Milne Bay Province, Papua New Guinea. It has been previously reported that the present Inferred Resource is 1.8Mt at 12.2g/t gold and 20g/t silver for 706,000 ozs gold and 1,160,000 ozs silver. The mineralization is "free milling", not refractory, and commences at surface. This Inferred Resource was noted in a Press Release dated June 12, 2008.
An Independent Technical Report titled "Independent Resource Report on the Imwauna Prospect, Normanby Property - Milne Bay Province, Papua New Guinea" prepared by Ralph N. Stagg of Project Geoscience Pty Ltd" was filed on Sedar and at www.newguineagold.ca on July 10, 2008. This report was prepared following the format and guidelines of Form 43-101 F1, Technical Report for National Instrument 43-101 Standards of Disclosure for Mineral Projects and Companies Policy 43-101 CP as amended on December 23, 2005.
The principal author, Ralph Stagg B Sc, M Sc, DIC, FAusIMM, MIMMM, E Eng. Is a "qualified person" and is independent of NGG.
Bob McNeil, Chairman and CEO commented: "We are pleased that this transaction provides for the expeditious development of the Imwauna property, without further immediate spending by NGG. It provides NGG with significant upside in that NGG will retain a 50% interest in the Imwauna property, while enabling the Company to focus on process and mining improvements and further exploration at Sinivit, as well as exploration at our other key project, Weioko."
The Option Agreement calls for an immediate cash down payment of $50,000 by the Optionee, a further payment of $200,000 upon receipt of written confirmation from the Government of Papua New Guinea that it requires only completion of a Preliminary Assessment on Imwauna at this stage of development, and a final payment of $750,000 on the completion of a $5,000,000 financing by the Optionee, by December 31, 2009. This date may be extended if timely approval from the Papua New Guinea Government is not received. On or before the financing completion, the Optionee will purchase $1 million of New Guinea Gold common stock at a 10% discount to market at the time the transaction is announced.
This News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company.
ON BEHALF OF THE BOARD
CHAIRMAN & CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE NEW GUINEA GOLD CORPORATION
For further information: For further information: on this release or on other projects, contact Forbes West toll free at 1-888-655-5532, email firstname.lastname@example.org or Judith O'Quinn at (604) 662-3598, email email@example.com or, access our website - www.newguineagold.ca