Coppermoly (ASX:COY) looks to have struck a deal with Barrick over the West New Britain Project tenements.
Company and Barrick are partners in the West New Britain Project tenements.
Since 2009 Barrick has spent over A$22 million on exploration on these West New Britain projects.
Coppermoly is in discussions with a number of parties that would likely involve the purchase and immediate sale of the tenements in Papua New Guinea.
The outright sale would result Coppermoly gaining a net cash surplus position.
Barrick has agreed to extend a period of exclusivity for Coppermoly to finalise terms with a third party until 31 December 2012.
The tenements are Exploration Licence numbers 1077 Simuku, 1043 Nakru and 1445 Talelumas).
Coppermoly would retain its existing exploration base in Kimbe, the provincial capital of the West New Britain Province of Papua New Guinea.
A successful completion of the transaction would see Coppermoly intensify and focus its exploration activities on the Makmak Exploration Licence (EL 2014).
The Makmak Licence is held 100% by Coppermoly and is located on the same geological trend as the West New Britain Project tenements – the Kula Awit Fold Belt.
Exploration of the Makmak Exploration Licence to-date has generated a number of significant targets for further exploration, the first stage of which will be scheduled to commence in the first quarter of 2013.
Makmak shows early potential for IOCG style mineralisation based on preliminary fieldwork by Coppermoly.
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