GPAC Enters Agreement to Acquire Copper-Gold Project in Papua New Guinea
GPAC Enters Agreement to Acquire Copper-Gold Project in Papua New Guinea

GPAC Enters Agreement to Acquire Copper-Gold Project in Papua New Guinea

  • 16-Apr-2024 5:43 PM
  • Journalist: Kim Chul Son

Great Pacific Gold (GPAC) is poised to acquire the Tinga Valley Property, a copper-gold project located in Papua New Guinea, through an amalgamation agreement with Tinga Valley Copper & Gold (Tinga). According to the definitive agreement, Tinga shareholders will be issued 12.5 million common shares of GPAC, with each shareholder receiving one GPAC common share for every Tinga share held.

The common shares allotted to the Tinga Shareholders will be subject to voluntary resale restrictions. Specifically, 33.3% of the common shares will be restricted for resale for a period of four months following the closing, while another 33.3% will be restricted for eight months post-closing. The remaining 33.4% will have resale restrictions for 12 months following closing.

Clarus Securities, serving as the financial advisor for GPAC, will receive compensation in the form of 600,000 common shares (advisor shares) for their advisory services. However, the completion of the acquisition and the issuance of advisor shares are contingent upon the approval of the TSX Venture Exchange and the fulfilment of other standard conditions. This strategic move is expected to enrich GPAC’s portfolio in the region, with exploration activities slated to commence in 2024 to unlock the property’s significant copper and gold porphyry potential.

Encompassing an area of 347km², the Tinga Valley Property boasts drill-ready, high-grade copper-gold porphyry and associated skarn exploration targets. Historical data indicates the presence of an epithermal overprint and the potential for a substantial project scale, with multiple porphyry bodies identified within a large alteration halo measuring 2.5km by 1.5km. Situated in the Papua Mobile Belt, a renowned copper and gold district, the property is surrounded by several world-class mines, including the Porgera mine operated by Barrick Gold, and the high-grade Ok Tedi mine.

Martin Pawlitschek, CEO of Tinga, conveyed optimism about the property's prospects, affirming, "Our assessments, on-site visits, and comprehensive review of historical data have showcased the Tinga Valley Property's capacity to accommodate significant deposits of considerable size and quality. The identified targets are patterned after Tier 1 geological counterparts like the OK Tedi Copper Gold Mine."

Great Pacific Gold possesses a collection of premium-grade gold projects situated in Papua New Guinea ("PNG") and Australia. In PNG, Great Pacific Gold has recently procured a substantial 2,166 sq. km mineral exploration land package. This package encompasses exploration licenses (EL) and exploration license applications (ELA), encompassing both nascent and well-progressed exploration targets featuring high-grade epithermal vein and porphyry-style mineralization.

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