PanAust Limited
PanAust Limited
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PNG-based Highlands Pacific has opened itself to a full cash takeover by Canadian major shareholder Cobalt 27 after the collapse of a streaming deal between the companies that was to have funded repayment of project loans on the Ramu nickel and cobalt mine near Madang.
The offer values Highlands at $A115M. Chairman Ron Douglas says its independent directors consider the 10.5cps offer, a 44% premium to its closing price, an attractive outcome for shareholders in a challenging environment.
(DEVELOPMENT)
Chinese-backed majority partner PanAust has outlined a radical change of development strategy in a new feasibility study for one of the world’s largest undeveloped copper-gold deposits, the giant Frieda River project in Papua New Guinea.
The proposed mine life of the giant Frieda River copper-gold project in PNG will be almost doubled to 33 years under a new feasibility study produced by 80%-owner PanAust. Pre-production capital costs under the new plan jump to $US6/b, from $3.6B in the previous 2016 FS.
Forecast annual production is 175,000t copper and 230,000oz gold at AISC of $1.01/lb. The development plan includes a 100-year hydro power station.
JV partners PanAust and Highlands Pacific face another round of arbitration in their dispute over $US12.4M in unpaid cash calls on their Frieda River copper-gold project in PNG.
The first stage commercial arbitration rejected Highlands' argument it was still entitled to be free-carried for its 20% share of project costs, but further hearings will decide who pays for additional feasibility work.
(DISPUTE RESOLUTION) PanAust and Highlands Pacific, partners in the giant Frieda River copper-gold project in PNG, face another round of arbitration in their dispute over $US12.4M in unpaid cash calls.
The row between JV partners Highlands and PanAust over the funding of expenditure on one of the world's largest undeveloped copper-gold deposits, the Frieda River copper-gold project is heading for arbitration after mediation attempts flopped.
The dispute erupted after 20% JV holder Highlands cited a Behre Dolbear Australia study to argue PanAust's May 2016 FS was substandard. A bid by PanAust to overturn the Highlands board was voted down 3 months ago.
Highlands says they've now agreed to seek a binding arbitration, although no hearing date has yet been set.
PNG miner Highlands has urged shareholders to take no action after its Chinese-backed major shareholder PanAust launched a bid to take effective board control. The requisition seeks to dismiss retiring chairman Ken MacDonald, his recently appointed successor Ron Douglas and independent directors Mike Carroll and Dan Wood and replace them with 3 nominees.
Highlands is seeking talks with 80% JV partner PanAust over questions raised in a Behre Dolbear Australia study about the May 2016 FS on the Frieda River copper-gold project in PNG.
MD Craig Lennon says the BDA study identified initiatives to improve the quality and completeness of the FS and raising possible alternative development options. He says the FS requires further work to reach the standard expected for a complex project like Frieda River.
Australian international miner PanAust has completed an FS outlining preproduction capital costs of $US3.6B for initial development of a large-scale openpit mining operation at its 80%-owned Frieda River copper-gold project in PNG. Highlands Pacific holds 20% while the PNG may acquire up to 30% of the project at cost.
PanAust has backed a revised $A1.2B takeover offer from its largest shareholder, Guangdong Rising Assets Management, saying it represents the best current option for shareholders to realise a premium value for their shares.