thanks for sympathising with me
Kelpie &
disarray.
share price for FNT jumped over 10% today, 0.038 -> 0.042
FNT is looking at ways to proceed with the mining at Kodu.
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Frontier Resources, Awaiting Renewal Of Kodu License, Launches Spin-Off Firm
By Tereni Kens in Port Moresby
Sunday: June 29, 2008
Frontier Resources Ltd has announced plans to list a spin-off company on the Toronto Stock Exchange (TSX) in order to progress its controversial Kodu project in Papua New Guinea.
This copper-gold-molybdenum deposit is located in the Owen Stanley Range and is 55 km north-east of Port Moresby.
The inferred resource is estimated at 945,000 tonnes of copper equivalent grading 0.47 percent, within 203 million tonnes grading 0.28 percent copper, 0.32g/t gold, 73 ppm molybdenum, and 1.8g/t silver. It is estimated to contain 570,000 tonnes of copper, 65 tonnes of gold, 15,000 tonnes of molybdenum and 365 tonnes of silver (or 1.25 billion pounds of copper, 2.1 million ounces of gold, 33 million pounds of molybdenum and 12 million ounces of silver).
The Kodu copper-gold-molybdenum project requires approximately K39 million (US$15 million) for a bankable/definitive feasibility study, with the new company likely to list on the TSX and raise funds from North American investors.
Frontier expects to retain or obtain a major equity in the new company, to be named Koiari Copper, as well as retaining a majority of the board of directors and a cash reimbursement of some costs to date.
The name Koiari copper is in honor of the landowners’ and district’s ethnicity.
According to Frontier, the new corporate strategy has been determined to accomplish the continued exploration and possible development of the Kodu deposit. This strategy will also allow Frontier to further progress and benefit from exploration and drilling success on its Tasmanian and prospective PNG tenements.
Frontier has also reported that it continues to await the renewal of Kodu exploration licence EL-1348. No official written or verbal correspondence has been received in relation to this issue for several months, the company said in a statement.
According to Frontier, it has complied with all licence renewal conditions and expended more than K8 million (US$3.1 million) on the licence, which vastly exceeds the statutory expenditure commitment.
Landowners state that mining at Kodu and tourism at Kokoda Track should proceed harmoniously together for the benefit of all stakeholders and they are becoming increasingly frustrated and agitated by the lack of the exploration licence renewal.
Frontier has also announced that it is now offering a seven percent equity interest in total to PNG stakeholders in the Kodu project, including the Kokoda Track Authority (KTA), if the Kodu deposit is mined.
Kodu landowners have stated they will give 1 percent of their previously promised 5 percent equity to all other Kokoda Track/nearby landowners, proving the wealth would be equitably distributed in the region.
Frontier Resources said it wanted to recognize this generous gift of 1 percent by the Kodu deposit landowners with an allocation of a further 2 percent equity interest in the Kodu deposit to be administered by the KTA or successor and/or Koiari Local Level Government (KLLG), half for funding to preserve, operate and improve the Kokoda Trail and half for the creation of an educational fund for all Trail and nearby landowners.
The KTA and KLLG continue to express support for the renewal of the exploration license that contains Kodu and the responsible development of the deposit for the benefit of all stakeholders.
According to Frontier, the proposed equity distribution will rightly provide most fiscal benefits to the affected landowners, significant economic and educational benefits to all Kokoda Trail and nearby landowners and also sufficient funds to preserve the historical significance of the Kokoda Track and improve facilities along it for tourists/trekkers.
According to KLLG, the Koiari people provide their strong support to Frontier’s push for a mine to be established at Kodu. It would be unfair if the Koiari people were prevented from improving their livelihoods.