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30 Dec 2011 10:29
Triple Plate Junction plc
("TPJ")
Morobe update; TPJ elects to hold 25% of the project on a 'carried basis'
TPJ today announces that it has advised Newmont Ventures Ltd. ("Newmont") that it is electing to have Newmont carry TPJ through to production in the Morobe Joint Venture.
As announced on 8 November 2011, Newmont met the Phase II earn-in requirement of the JV Agreement and thus earned a 70% interest in the Morobe Joint Venture. Under the JV Agreement, TPJ may then elect to have Newmont carry TPJ to production in return for Newmont being granted an additional 5% interest in the Morobe Joint Venture, leaving TPJ with a 25% interest.
Following the election, TPJ will be carried by means of loan financing from Newmont without any further contribution required by TPJ until production commences. The loan, and any accrued interest thereon at a rate of LIBOR plus 400 basis points, is repayable out of 90% of TPJ's share of project cash flow upon production.
By making this election, TPJ will not be required to provide funding for on-going exploration of any of the targets within the licence area covered under the Morobe Joint Venture, nor for their development in the event that economically viable resources are discovered and development decisions are taken. TPJ maintains exposure to 25% of the entire Morobe Joint Venture that covers approximately 3,700 sq. km of the Morobe mineralized district within the Papuan Continental Arc. Drilling at the second drill target, Gumots, is expected to commence in early 2012.
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Triple Plate Junction plc
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