Papuan Precious Metals Corp. (the “Company”) is pleased to announce that the merger (as previously disclosed on June 1, 2010) between Jalna Minerals Ltd. and Papuan Precious Metals Corp. (“PPM”) is now complete and the common shares of the amalgamated company will begin trading on the TSX Venture Exchange under the symbol PAU on October 1, 2010.
The Company, through its wholly-owned subsidiary, owns a 100% interest in the Mt. Suckling project (the "Property") located approximately 200 km east of Port Moresby, Papua New Guinea and other properties located in Papua New Guinea.
Under the terms of the merger, Jalna shareholders were issued, on a 1 for 4 basis, 6,128,775 shares and PPM shareholders were issued 21,934,023 shares one a 1 for 1 basis.
Description of the Property
The Mt. Suckling project is situated at the eastern end of New Guinea’s Central Range, one of the world’s premier porphyry copper belts. This belt includes several giant porphyries including Grasberg/Ertsberg (Freeport/Rio Tinto), Ok Tedi (
Lead prospect is the Urua Creek gold-copper prospect, hosted in a very young possible diatreme, a breccia filled volcanic vent that has had a direct connection to the surface. The breccia has dimensions in excess of 1,700 x 900 m. Soil gold-copper-molybdenum anomalism is coincident with the breccia, suggestive of a porphyry copper system. The breccia contains areas of both low-grade propylitic zone and high-grade phyllic zone gold-copper mineralisation. Gold-copper mineralisation in the propylitic zone in surface trenches ranges up to 33 m @ 0.17 % Cu, 0.27 g/t Au and in the phyllic zone up to 36 m
@ 0.72 % Cu, 0.97 g/t Au (incl. 12 m @ 1.13 % Cu, 2.03 g/t Au). Obvious drill targets are available.
Ioleu Creek copper-gold prospect is located 19 km east of Urua Creek prospect. The prospect is localised within the Keveri Fault Zone and is noteworthy for a float train of large 50-60 cm diameter boulders of metabasalt containing veins of chalcopyrite. These boulders have been tracked to landslides presumably associated with fractures of the Keveri Fault Zone. Their angularity indicates that they are sourced locally. A widespread area of pannable gold is coincident with the train of copper boulders. Detrital gold is fine-grained (< 0.5 mm size) and angular, again suggestive of limited transport and a local source. A 3 km2 area of intense pervasively argillised gabbro with localised development of haematite stockwork is associated with an 880 m x 1,200 m copper-platinum-palladium soil anomaly and appears to be offset to the west from the area shedding chalcopyrite-bearing boulders.
The recently identified Araboro Creek prospect is distinctive for its cluster of nested circular features. It is located in the linear belt that incudes the Urua Creek and Ioleu Creek porphyry prospects and appears to be another intrusive centre localised along the Keveri Fault Zone. Historical sampling located a quartz-sulphide sample carrying 1.3 % Cu 0.14 g/t Au, apparently sourced from the circular feature.
In addition to the first tranche of the financing announced in its news release dated June 1, 2010, which raised gross proceeds of $6,735,601 through the issuance of subscription receipts for the purchase of 22,452,003 Units, the Company will complete a second tranche of the financing in an amount of $1,000,000 by issuing an additional 3,333,333 Units at $.30 per Unit. Each Unit consists of a post (four for one) consolidated share and warrant to purchase an additional post consolidated share for 3 years at $0.40 per share. The Units will be subject to a standard four month hold period. A cash finder’s fee of 7% and compensation warrants of 7% will be paid to finders in accordance with Exchange policies.
Change in Board
In addition to the current board consisting of three directors, the board of the Company upon completion of the Acquisition will be increased to 6 and the following directors of PPM will be added to the board of the Company.
Dr. David Lindley:
Dr. Lindley has spent over 25 years predominantly in Papua New Guinea (
Dr Chris Cornelius has spent over 20 years as a senior executive working throughout the international natural resource sector and in the E & P sector, and has more recently advised major financial institutions and blue-chip executive teams on global growth strategies. He holds a B.Sc from Manchester University and PhD from Aston University in Geology and is an Adjunct Professor at the University of British Columbia. He is currently the Chief Executive of Cuadrilla Resources Holdings Ltd, Europe’s leading independent Shale Gas exploration company.
Mr. Kelly is a former investment banker with over 30 years of banking, corporate strategy, capital markets, mergers and acquisitions and corporate finance experience in Australia, Europe and international markets. Mr. Kelly holds a B. Juris and
A National Instrument 43-101 technical report on the Property has been prepared for the Company and PPM by Peter T. Goldner (BSc.[Hons] Geology, FAusIMM, FAIG, CPGeo). Mr. Goldner is a qualified person and independent of the Company and PPM, in accordance with National Instrument 43-101. A copy of the technical report has been filed on SEDAR. Mr. Goldner is also responsible for the technical matters pertaining to the Property as set out in this news release.
Haywood Securities Inc. acted as the Company’s sponsor for the transaction, for which it received a sponsorship fee of $25,000. Additional details regarding the transaction are provided in the Company’s Information Circular dated August 19, 2010 available on Sedar.
ON BEHALF OF THE BOARD
Devinder Randhawa, President
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.