Anglo American Plc notified Highlands Pacific Ltd. that it intends to withdraw from the Star Mountains copper-gold joint venture in Papua New Guinea.
The company will withdraw from the joint venture in 30 days and relinquish its vested 15% interest in the project, leaving Highlands Pacific with a 100% interest.
The companies established the joint venture in 2015, with Anglo American having an option to earn an 80% stake in the project by meeting certain milestones.
Anglo American funded an extensive exploration program including two diamond drilling campaigns and spent a total of US$38 million on the project, including a US$10 million payment for its initial entry.
Highlands Pacific Managing Director Craig Lennon said Feb. 8 that Anglo American's involvement greatly enhanced the understanding of the geology of the tenements and substantially increased the value of the project, and the company will now be free to introduce a new partner to continue exploration.
