Gold Anomaly Ltd And LionGold Corporation Ltd Sign MOA To Develop PNG Assets

Gold Anomaly Ltd announced details of a proposed agreement that would fast track development of its assets in Papua New Guinea (PNG) and deliver first production within 15 months. Gold Anomaly has entered into a Memorandum of Agreement (MOA) with LionGold Corporation Ltd which provides, subject to conclusion of a final binding legal agreement to be negotiated between the parties, for LionGold to acquire up to 60% of GOA’s PNG subsidiary company Anomaly Limited (AL) which owns GOA’s PNG assets. These assets includes Crater Mountain, which is shaping up as a major gold and copper deposit, as well as the Fergusson Island gold deposits, with total current gold resources in excess of 1 million ounces. Under the terms of the MOA LionGold can earn up to 60% of AL, with the remainder to be held by GOA. LionGold will invest up to $8.5M by way of 3 tranches of convertible notes (firstly into GOA by way of a $2.0 million convertible note, issued within seven days of signing of the MOA, at a 20% premium to the 6 month VWAP of GOA shares immediately prior to issue of the convertible note; secondly for 40% of AL by way of a $3.0 million convertible note; and thirdly an option for a further 20% of AL by way of a $3.5 million convertible note. Following the transaction, Gold Anomaly will continue the technical management of the PNG assets.

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