THE BOURSE WHISPERER: Bulletin Resources (ASX: BNR) has assigned a 16 per cent interest in the Halls Creek Nicholson’s project in Western Australia to Pacific Niugini (ASX: PNR) upon completion of $1.2 million in expenditure on the project.
The ownership of the project is now: Pacific Niugini 65 per cent, Bulletin 35 per cent.
The two companies are progressing a project development plan at the Nicholson’s project designed to achieve the commencement of construction and refurbishment in early 2015, with commencement of production expected approximately six months after initiation of mining activities.
Results of a feasibility study conducted by Pacific Niugini, which were announced earlier this month, show the financial parameters of the project to be robust with potential to increase the known reserves and resources considered high.
“The progress that Pacific Niugini has made and particularly the results of the feasibility study are quite impressive,” Bulletin Resources said in its ASX announcement.
“The feasibility study highlights the value that Bulletin’s share of the project delivers to Bulletin and underpins strong future value potential for shareholders.”
Bulletin reinforced its intention to remain part of the project going forward adding it expects to benefit from the positive cash flow the project is capable of delivering as highlighted by the feasibility study.
Bulletin indicated it has commenced determining its options with regard to financing via possible debt facilities to fund its JV requirements.