PNG Gold Corporation Announces Acquisition of Securities of New Guinea Gold Corporation
13.06.2011 | Marketwire
VANCOUVER, June 13, 2011 - PNG Gold Corporation (“PNG“) (TSX VENTURE: PGK) announces that, pursuant to the completion of the business combination (the “Business Combination“) between International Silver Ridge Resources Inc. (“Silver Ridge“) and NMC Mining Corp. (“NMC“) announced today, it has acquired beneficial ownership of an aggregate of 26,855,994 units (“NGG Units“) issued by New Guinea Gold Corporation.Pursuant to a loan facility dated April 20, 2010, NMC advanced a secured bridge loan to NGG in the principal amount of $3,000,000 with a 12 month term and an interest rate of 8% per annum. NGG repaid the loan, together with accrued interest, by issuing an aggregate of 26,855,994 NGG Units to NMC. Each NGG Unit consists of one common share of NGG (an “NGG Share“) and one share purchase warrant (a “NGG Warrant“) with each NGG Warrant entitling NMC to acquire an additional NGG Share within a period of two years at an exercise price of $0.225 per share. On June 7, 2011, PNG acquired all the issued and outstanding shares of NMC, and thereby acquired beneficial ownership of the NGG Units.
Based on information publicly filed by NGG, there are currently 234,013,436 NGG Shares issued and outstanding. As a result of the acquisition of NMC, PNG has ownership of 53,711,988 NGG Shares, or approximately 20.59% of the NGG Shares currently outstanding on a partially-diluted basis (assuming exercise of the NGG Warrants). On a non-diluted basis, PNG has ownership of 26,855,944 NGG Shares, or approximately 11.48% of the NGG Shares currently outstanding.
The NGG Shares are listed on the TSX Venture Exchange under the symbol NGG. The NGG Units were acquired in a private transaction.
PNG intends to hold the NGG Units for investment purposes. PNG may, depending on market and other conditions, increase its beneficial ownership, control or direction over the NGG Shares, through market transactions, private agreements, treasury issuances, exercise of NGG Warrants or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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Contact Information
PNG Gold Corporation
Dick Whittington, President and Chief Executive Officer
604 669 4899
PNG Gold Corporation
Neil MacRae, Investor Relations Manager
604 669 4899
604 685 2345 (FAX)
www.pnggold.com