JOHANNESBURG (miningweekly.com) – ASX-listed Highlands Pacific will regain 100% of its Star Mountain exploration tenements after global miner Anglo American announced it will not continue with the joint venture (JV) in Papua New Guinea.
In accordance with the terms of the JV, Anglo American will withdraw within 30 days and relinquish its vested 15% holding in the project.
MD Craig Lennon on Thursday expressed Highland’s disappointment that Anglo American had withdrawn its support for the JV, but said that the group’s involvement over the past three years had greatly enhanced the understanding of the geology of the tenements.
Since the establishment of the JV in February 2015, Anglo American has funded an extensive exploration programme, including two diamond drilling campaigns. The mining giant has spent a total of $38-million on the project, including a $10-million payment to Highlands Pacific for its initial entry into the project.
“We will now be free to introduce a new partner to continue exploration efforts,” he said.
The Star Mountain tenements are about 20 km north-east of the Ok Tedi mine in the West Sepik province of Papua New Guinea.