Kainantu Resources Ltd (CVE:KRL) (FRA:6J0) said it executed definitive agreements to gain control of the May River project in the world-renowned copper and gold district of Frieda River, Papua New Guinea (PNG).
The gold miner entered into two separate definitive purchase agreements with ASX-listed Niuminco (ASX:NIU) and Hardrock, a private company.
The deals will see Kainantu gain control of the highly prospective copper and gold mineral concessions, known as the May River project through the acquisition of two holding companies. The area consolidates three adjoining tenements and is less than 15 kilometers (km) away from the PanAust (ASX:PNA) owned world-renowned Frieda River project.
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The key project prospects include Skiraisa, Foya, Eserebe, Mountain Gate and Iku Hill and are situated along a 7 km long North-Northwest trending structural corridor, exhibiting many attributes similar to the extended mineralized system identified at the Frieda River project.
In the statement, Matthew Salthouse, CEO of Kainantu commented: “The May River project is an exciting acquisition for KRL, given its location in an exceptionally prospective and proven district for significant copper-gold projects. May River will give KRL access to a number of highly prospective copper-gold prospects in close proximity to the world-renowned Frieda River Copper-Gold project.”
Salthouse went on to say: “The deal also demonstrates KRL's ability to execute value accretive acquisitions, in line with our broader strategy of developing a portfolio of high-quality gold and copper-gold projects in the Asia-Pacific region; and advancing these through the value curve.”
Kainantu Resources will continue to work with the key stakeholders, Niuminco and Hardrock to develop May River.
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