RTG Mining Inc. entered into a binding agreement to acquire 80% of the Mount Kare gold project in Papua New Guinea.
The company said Dec. 10 that it entered into a binding memorandum of agreement with GMG Global Mining Group Ltd. and Tribune Mt. Kare Ltd., the two priority applicants for the project.
RTG will acquire the project when the applications are converted into a new exploration license and will pay about US$18.8 million in cash and shares as part of the transaction.
The deal is conditional on ongoing litigation from GMG Global and Tribune are resolved in favor of the PNG Mineral Resource Authority, upon which RTG will provide US$1 million for the grant process of the license.
On completion, the company can appoint nominees to the board of GMG Global and Origold PNG Ltd., the new RTG unit that will hold the Mount Kare project.
RTG will manage and solely fund the exploration joint venture for the first 15 months.
The Mount Kare project has a JORC 2004-compliant historical mineral resource of 2.1 million ounces, including 1.2 million ounces in the measured category.