GB Energy Limited (ASX: GBX) is pleased to announce the signing of a binding Term Sheet with Kalia Holdings Pty Ltd (Kalia) and its shareholders that grants GBX a 120-day option to acquire 72.29% (and potentially 100%) of the shares in Kalia.
Kalia, the parent company of Papua New Guinean registered subsidiary Kalia Investments Ltd, holds contractual rights to explore for minerals and develop mines in the Tinputz district of North Bougainville, Papua New Guinea which is prospective for gold, copper and other minerals.
Bougainville is one of the last undeveloped mineralised provinces of the world. The island straddles the Pacific ‘Ring of Fire’ tectonic plate boundary, an ideal setting for porphyry copper-gold and associated epithermal gold mineralisation.
Bougainville remains largely unexplored with a moratorium on mining exploration and development preventing activity since 1971. In August 2015 Bougainville passed a new Mining Act and subsequent Regulations (2016) which states “All minerals existing on, in or below the surface of customary land in Bougainville are the property of the owners of the customary land.”
Kalia has signed a binding Deed of Agreement with Toremana Resources Ltd (Toremana) that provides for a joint venture with Kalia holding 75% and Toremana 25% free carry through to production. Toremana is an approved landowner organisation under the Bougainville Mining Act 2015 comprised of seven local clans that represent customary landowners in an area of approximately 1,800km2. Kalia has invested approximately $790,000 into the Tore project, involving extensive and ongoing awareness, reconciliation and cleansing programs with local communities.
In June 2016, Bougainville’s House of Representatives passed a motion asking the Autonomous Bougainville Government (ABG) to lift the moratorium on mining.2 The transaction with Kalia seeks to ensure GBX is ready to explore in Bougainville if and when exploration licences are granted.
The merger with Kalia will provide GBX with an exciting and unparalleled opportunity to explore and assess copper and gold prospects within Bougainville. In joining a public company, Kalia will be able to better deliver information to the public regarding the joint venture with Toremana. Kalia will also have access to the financial markets required for a project of this scope.
GBX and Kalia thank the customary landowners, their Chief Meris, Chiefs and Clansmen. Also the esteemed members of the ABG, Ministers, Members of Parliament and Departmental Officers for their advice and guidance.
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