Barrick due diligence on Coppermoly successfully completed

    
    Trading Symbols: TSX-V: NGG
    Frankfurt: NG8.FSE
    Web Site: www.newguineagold.ca
    

VANCOUVER, Nov. 10 /CNW/ - Coppermoly Ltd (Coppermoly), an Australian Securities Exchange (ASX) listed company, in which New Guinea Gold Corporation (NGG) holds approximately 30 million shares (approximately 23% of issued capital), released the following press release entitled "Barrick Due Diligence completed - $20 million Farm In to Commence."

Bob McNeil, Chairman and CEO of New Guinea Gold is also a Director of Coppermoly Ltd. Bob McNeil commented: "We believe this release is material and relevant to New Guinea Gold in view of its large equity in Coppermoly. The Coppermoly share price closed at AUD$0.155 on the ASX on Tuesday November 10, 2009, giving a value to NGG's holding in Coppermoly of AUD$4.65 million, or approximately C$4.55 million. This is a very attractive deal for Coppermoly, with excellent substantial upside for NGG. We believe this transaction validates NGG'S and Coppermoly's strategy of bringing in partners to speed up project development while retaining significant upside for shareholders."

The information in this release was prepared under the direction of Robert D. McNeil a Fellow of the Australasian Institute of Mining and Metallurgy and a "qualified person" as defined by National Instrument 43-101. Mr McNeil has read and approves the information contained herein.

    
    ON BEHALF OF THE BOARD

    "R.D.McNeil"
    CHAIRMAN & CEO

    Neither 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.


                       BARRICK DUE DILIGENCE COMPLETED

                       $20 MILLION FARM-IN TO COMMENCE
    

This Announcement is further to the Company Announcement dated 12 October 2009.

Barrick (PNG Exploration) Limited (Barrick), a wholly owned subsidiary of Barrick Gold Corporation, has today notified Coppermoly Limited that it has successfully completed its due diligence under the terms of the Letter Agreement between the two companies.

Barrick will now commence its farm-in by sole funding up to AUD $20 million to earn up to 72% in Coppermoly's emerging world-class copper projects on the island of New Britain in Papua New Guinea.

Barrick's minimum commitment is AUD $3 million within the first 24 months.

Barrick will also subscribe for 6,309,647 fully paid ordinary shares in Coppermoly Ltd at 9 cents a share (which was the Company's share price at the time of signing of the Letter Agreement) raising $567,868.

The Barrick placement will equate to approximately 5% of the share capital of the Company and will be voluntarily escrowed from sale for a minimum of two years.

When the placement is completed Coppermoly will have approx. $2.8 million in cash and cash equivalents.

    
    "Peter Swiridiuk"
    MANAGING DIRECTOR
    

SOURCE NEW GUINEA GOLD CORPORATION

For further information: For further information: on this release or on other NGG projects such as the Sinivit Gold Mine, contact Forbes West toll free at (888) 655-5532, email forbes@sherbournegroup.ca or Judith O'Quinn at (604) 662-3598, email ngg@telus.net or access our website - www.newguineagold.ca

Organization Profile

NEW GUINEA GOLD CORPORATION

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890