Gold Anomaly Limited (
The total consideration payable by Kenai for the residual balance is the issue of 16 million ordinary Kenai shares representing 26% of the current 62 million Kenai shares on issue. 10 million shares will be issued on completion of the sale following regulatory and related approvals, with such shares subject to a 12 months non-trading hold period, and an additional 6 million shares upon occurrence of any of the following:
(a) a granted Mining Lease or equivalent on the Sao Chico Project ("the Project");
(b) a positive bankable feasibility study of the Project;
(c) commencement of mining, other than under a GUIA trial mining licence, at the Project;
(d) a disposal in whole or part by KAI of GOAB or a disposal of the Project in whole or part (for example by way of sale, or farm-in or joint venture by GOAB or KAI) or
(e) a takeover of KAI including a partial takeover.
Commenting on the arrangement Gold Anomaly Exploration Director Peter Macnab said "Following the recent announcement of the maiden resource and petrology results from the recent deep hole at Crater Mountain the decision to focus on Crater was easy." Mr Macnab also said, "Kenai management have demonstrated their ability with excellent success from their initial drilling program. Selling our direct stake for shares means that we can participate in the upside while not having to use precious cash to continue exploration and development."
Kenai is a Canadian company focused on precious mineral project exploration and development, towards early significant gold production. In addition to the Sao Chico gold project in Brazil, Kenai is also involved in exploration of the wholly-owned Quartz Mountain and Hope Butte gold epithermal gold projects in South-Eastern Oregon, both located in Malheur County, close to the Oregon border with Idaho.
On the issue of the first 10 million shares GOA will be the largest shareholder of Kenai owning 13.9% of the company.
About Crater Gold Mining
Crater Gold Mining Limited (ASX:CGN) is engaged in the exploration, evaluation and exploitation of gold and other base metal projects. The Company's segments include Croydon, Fergusson Island and Crater Mountain. The Croydon project consists of two sub-projects in far North West Queensland, the Croydon Polymetallic Project and the Croydon Gold Project. The Fergusson Island project consists of two gold exploration projects at Wapolu and Gameta on Fergusson Island, in Milne Bay province, Papua New Guinea. The Gameta Deposit lies within exploration license (EL) 1972. It is located on the northeast coast of Fergusson Island. The Wapolu Deposit lies within EL 2180. The Crater Mountain is an exploration and production project located in the Papua New Guinea Highlands approximately 50 kilometers southwest of Goroka. The project consists of three contiguous ELs, straddling the border between the Chimbu and Eastern Highland Provinces.
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