(MENAFN - ProactiveInvestors - Australia) Aviva Corporation (ASX: AVA) has invested A125,000 in Papua New Guinea-focused explorer Coppermoly via a convertible note.
Under the Convertible Note, Aviva will also be issued with 1 million unlisted options in Coppermoly with an exercise price of 0.05 per option and expiring 36 months after the date of issue.
Queensland-based Coppermoly has large tonnage copper-gold-molybdenum projects in West New Britain in Papua New Guinea.
The company holds a 28% interest in three exploration licences " Nakru, Simuku and Talelumas "which together make up the West New Britain Project, and wholly owns its remaining exploration licence " Makmak.
Gold mining heavyweight Barrick Gold Corporation (TSX: ABX, NYSE: ABX) holds the remaining 72% interest in the West New Britain Project, but is seeking a divestment of their interests.
Lindsay Reed, director of Aviva, commented: "This reflects a very small investment by Aviva but provides the option to participate in a very interesting project in which more than US20 million of exploration work has been completed."
West New Britain Project
The Nakru-01 deposit has an Inferred Resource of 38.4 million tonnes at 0.61% copper, 0.29 grams per tonne (g/t) gold, 1.8g/t silver, 13ppm molybdenum, 19.29ppm lead and 659ppm zinc (using a 0.2% copper cut-off).
Results from a Conceptual Mining Study showed that its development could be cash flow positive within two years of commencement of production, however additional drilling is required to determine the full extent of mineralisation.
Meanwhile, the Simuku Project has an Inferred Resource of 200 million tonnes at 0.36% copper, 61ppm molybdenum, 0.06g/t gold and 2g/t silver.
Drilling by Barrick has demonstrated continuity of mineralisation at over 500 metres depth beneath the resource.
At Makmak, Coppermoly has recently confirmed iron oxide, copper gold (IOCG) type deposit potential after assays identified up to 2.39% copper and high grade iron ore.
Assays from four samples from the Pulding copper and molybdenum prospect showed high potential.
Results included 2.39% copper and 223 parts per million (ppm) molybdenum, 1.98% copper and 503ppm molybdenum, 1.27% copper and 183ppm molybdenum, and 1.33% copper and 440ppm molybdenum.
Four samples from the Wara Creek iron ore prospect also assayed greater than 50% iron.
These samples are of interest for high grade, low impurity iron ore, the source of which requires additional exploration ahead of drilling.
Additional support for Coppermoly
A second organisation, Mitchell River Group, has simultaneously made the same quantum of investment in Coppermoly by way of a convertible note on exactly the same terms and conditions as Aviva.
Mitchell River Group is a private investment partnership specialising in the metals and energy industries.
The company provides seed funding and management for early stage resource projects with a primary focus on base metals, coal and uranium.
The Mitchell River Group has supported the establishment of three substantial nickel companies over the past years.
These are Sally Malay Mining (now Panoramic Resources) which has the Savannah project in production, Albidon Limited which has the Munali nickel-copper-cobalt-platinum group metals mine and concentrator project in Zambia, and Mirabela Nickel which is operating the large Santa Rita nickel project in Brazil.
Sale of African assets
Aviva completed the sale of Aviva Mining Kenya, the entity that held its Kenyan gold and base metals assets, to African Barrick Gold in October 2012, receiving 20 million with a further payment due of 10 million if a National Instrument 43-01 compliant Indicated Resource of 3 million ounces or more is declared over these project areas.
Following the completion of the sale, Aviva's main interest is a coal based energy asset " the Mmamantswe project in Botswana.