png government and landowner support, page-9

Here is some backround re the landowners alluvial mining proposal.

There is a brief history timeline that some newcomers can use. Most of the history is not available online.

Hope it can be of use to others

Jack


PROJECT PROPOSAL - MT. KARE
 
MT. KARE STRUCTURAL AND GEOLOGICAL SETTINGS
 
The Mt. Kare prospect is ideally located in the New Guinea Thrust belt within a window of Siltstone and Sandstone of the Cretaceous Feing Group. These are intruded by Pliocene diorite porphyries, and juxtaposed and uncomfortably overlain by limestone and calcareous siltstone of the Oligocene Nipa Group. The intrusives are intimately associated with the gold mineralization and appear to be localized along a North- South transfer structure which also includes the Giant Porgera Gold Mine, some 20 km to the NE of Mt. Kare.
 
MT. KARE PROPERTY EXPLORATION LICENC (EL 1093)
 
1985  PA 591 was issued to Mt. Kare Holdings Pty Ltd (CRA)  
               Exploration Licence over 250 sq. km in the Enga province.
 
1986     Field work carried out in PA 591 with geochemical data  
1987     indicating positive results in the Mt. Kare area.
 
1988     Further work in the Mt. Kare area identified two additional areas  
1989     of interest;
 
1. Upper Gewa River 
2. Lubu Creek
 
1992     CRA pulled out of Mt. Kare and transferred the Special Mining    
            Lease (SML) to Kare Puga Development Corporation ltd
                 (KDC) under the Mt. Kare Settlement Agreement and let the
                   PA 591 lapsed
 
1992  Exploration Licence EL 1093 was granted to Matu Mining a  
            subsidiary Company for Carpenters Pacific NL, KDC and  
            Oakland disputed the licence granting in the National Court
 
1994 Kare Settlement Agreement was signed between Carpenter          
               Pacific, Matu Mining, Ramsgate, Oakland, KDC and Madison  
            Enterprises (PNG) as Manager/ Operator of EL 1093
1996 Mt. Kare Joint Venture Agreement signed after settlement Agreement    between disputing parties and Madison Enterprises (PNG) Ltd took over as operator and manager of EL 1093 project.
 
1999        Madison reported the reserves on the hard rock and alluvial
 
                       1. Hard rock 2. 5 million ounce
                       2. Alluvial 2.0 million ounces
 
2000           Madison Enterprises (PNG) Ltd is the current licence Holder           ?          
                    (EL1093) and Alluvial Mining Manager (SML).
 
2005    Madison withdrew the arrangements made with Equatorial  
   Resources of Australia to complete due diligence studies to acquire their    
    interest but lately, Madison made new deal with Longview Investments and
   Buffalo gold to sell its 90% interest in EL 1093.
 
2009              Madison ceased exploration since liquidator was appointed on the 5th
                      June 2009 and Mt. Kare camp took over r by KDC
 
2010               liquidator sold EL 1093 to Summit Development Ltd owned
                      by Indochine Mining
 
2012?EL 1093 expires 28th August 2012
 
SPECIAL MINING LEASE (SML) FOR ALLUVIAL PURPOSES
                               
The state granted a Special Mining Lease (SML-1 Mt. Kare) over an area of 5010 hectares within Exploration Licence (EL.1093) to Mt. Kare Alluvial Mining on the 27th of September 1990. Mt. Kare Alluvial Mining (MKAM) is a consortium comprising CRA and the landowner company, Kare Puga Development Corporation Limited (KDC). CRA had controlling shareholding in MKAM, having 51% and KDC 49%.  
 
MT. KARE ALLUVIAL MINING (SML1 MT.  KARE)
 
1n 1990 MKAM commenced mechanized alluvial mining on the SML with permanent camp set, more than 200 employees and produced gold 2.5 m2 per day The landowners through KDC dispute the granting of the SML to Mt. Kare Holdings Ltd (CRA) in the National Court, filing Judiciary Review to reverse the decision that SML was supposed to be given to KDC. In 1992, CRA voluntary withdrew from the project site and transferred the SML and mining equipments wholly to Kare Puga Development Corporation Limited (KDC) and let the PA 591 lapse under the Mt. Kare settlement Agreement.
 
ALLUVIAL MANAGEMENT AGREEMENT
 
In 1992, KDC signed Alluvial Management and Hard Rock Agreement with Oakland Pty Ltd a subsidiary company of Ramsgate Resources NL, the Western Australian Company. Oakland to have 40% of alluvial profits as the Manager and 90% on the hard rock while KDC to have 60% on the alluvial resource and 10% on the hard rock development on EL 1093. Oakland assisted the litigants to fund the Mt. Kare litigation to remove CRA.  
 
MT.KARE JOINT VENTURE AGREEMENT (MKJV)
 
In 1996, the MKJV Agreement was signed between Madison Enterprises (PNG) Ltd, Matu Mining Ltd, Carpenter Pacific Resources NL, Ramsgate Resources NL, Oakland Ltd and Kare Puga Development Corporation Ltd on El 1093. The Alluvial Management Agreement between Oakland Pty Ltd and KDC was assigned to Madison Enterprises (PNG) Ltd under the Mt. Kare Joint Venture Agreement (MKJV). Madison was the Manager and operator of the exploration licence EL 1093 and also the Alluvial Mining Manager  
 
MADISON AS MANAGER/ OPERATORS OF ALLUVIAL RESOURCES, FAILED IN THEIR DUTIES AND OBLIGATIONS SPECIFICALLY:
 
Madison breaches both the (MKJV) Mt. Kare Joint Venture Agreement and the Alluvial Management Agreements by not performing the duties required under the agreements:
 
1. The special Mining Lease (SML) 1 Mt. Kare expired in September 2000 after Madison  
    Enterprises (PNG) Ltd failed to develop the Alluvial Resources on the (SML) since  
    1997 to 2000.
 
2. Madison as the Alluvial Manager/ operator, failed to pay annual rental fees outstanding
   with the Mining Department, more than K300,000,00
 
3. Madison failed to submit Alluvial Mining Development Plan to develop the SML as the  
    manager of the alluvial project.
   
4. Madison failed to lodge SML renewal application before or after expiry of SML to
    renew the licence.
 
5. Madison failed to lodge new application for Alluvial Mining Lease (AML) under the
   Mining Act Section 38.2
 
6. Madison has registered Charge and Caveat over the SML that stops KDC from entering  
   into new arrangements with any new developer to develop the SML and that cripple
   KDC from Alluvial development.  
 
7. Madison’s Court Order OS No. 241 of 1999 stops KDC from dealings or removing the
    registered caveat lodged by Oakland over the SML held by KDC in 1994.
 
8. Madison failed to defend the Court Order taken by KDC to extend the SML from 27
   September 2000 to 27 September 2001 that State filed a motion that invalided the Order
   on the 14th February 2001.
 
9. Madison submits 16 AML applications for Tributary licence that was granted to the  
   applicants and that denying interests held by KDC under the previous SML. ?  
 
10. Madison failed to honour the EL 1093 Renewal Condition MOU signed in 1999  
     between the then Mining Minister and Madison Enterprises (PNG) Ltd, for Madison to
     develop the alluvial resources and use its 40% alluvial profits to pay compensation to
     landowners especially the Mt. Kare litigants.
 
11. Madison Hired Alluvial Mining Expert, Rose McMaster’s ALLUVIAL    
    ASSESSMENT SML 1 STATUS REPORT downgraded the alluvial reserves to 2
    million ounces from CRA reported in 1990 of 7.5 million ounces.
 
 
APPOINTMENT OF LIQUIDATOR
 
In 2008, the PNG creditors filed a petition in the National Court to wind up Madison Enterprises PNG Limited for not paying the creditors’ due to company insolvency.
 
The National Court appointed a liquidator Mr. James Kruse from Deloitte Touche Tohmatsu on the 5th of June 2008 to liquidate Madison Enterprises PNG Limited
 
Madison insolvency invalided the Mt. Kare Joint Venture Agreement and other agreements, rights that the company may have over EL 1093 or on alluvial resources.  
 
EXPIRY OF ALLUVIAL MANAGEMENT AGREEMENTS  
 
Alluvial Management Agreement between KDC and Madison on 60 /40% profit sharing in favor of KDC was lapsed upon the expiry of SML in September 2000 and now the company Madison is under liquidation and KDC to invite new investors for alluvial
 
New investors interested on the alluvial resources should sign MOU with KDC and should sought permission from the MINING Department and EL 1093 holder to consent to the ML application as required under the Mining Act for the Exploration Licence holder to issue a letter of consent for application to be approved by Mining Department.
 
NEW MINING LEASE FOR ALLUVIAL PURPOSES
 
Alluvial Mining can be reactivated under Section 38.2 of Mining Act 1982 for mechanized Mining in which the both parties to have equal interests and landowners alluvial profits after costs. The current estimated alluvial reserves 2.0 Million ounces (study done by Rose McMaster, Madison hired Alluvial Expert in 2002) and cullvial deposit is more than alluvial deposits.
 
In 1999, two reports compiled by Madison hired alluvial expert that downgraded alluvial reserves. CRA reported combined resources of 5.750,000 cubic metres at7.5g/m3 was downgraded to approximately 1,000,000 cubic metres at 2.0g/t Au
 
Alluvial resources are very limited and may possibly have a total combined resource not exceeding 2.0 million ounces reserves unless more studies are down to increase the reserves as presume more reserves can be identified with the SML 1 Mt. Kare.
 
A brief cash flow projection is presented and assumes that the Mine life will not exceed five (5) years and two to four years alluvial mining using mechanized methods is predicted by studies done by alluvial experts..
Mt. Kare alluvial Mining programme Budget Estimate is attached with the map copy of the Special Mining Lease (SML) and other relevant documents to be provided upon request
 
SECTION 1: EXECUTIVE SUMMARY
 
The proposed feasibility study will be carried out in Mount Kare area which is located along the border of Enga and the Southern Highlands Provinces. The main objective of this study is to find out the grades of alluvial gold and its contents in the Blocks; A, B, C and D in (refer to Attachment 2). The blocks A, B, and D are located within the Enga side (Paiela side) and Block C is located on the Southern Highlands side (Tari side).
 
The deliverables we propose includes the reports on;
 
1: The contents and grades of the alluvial gold,
 
2: The boundary for the New Mining Lease area for Alluvial Purposes,
 
3; the adequate data to substantiate the Application for new Mining Lease    
   for Alluvial Purposes to be lodged under the Mining Act (Section 38.2)    
   with the Mining Department.
 
4: The necessary informational data to substantiate the Mining Development
    Plan to be submitted to the Mining Department for the Mining Advisory
    Board’s (MAB) consideration and approval on the Application for
    granting of Mining Lease for Alluvial Mining Purposes.
 
Furthermore, in January 1999; feasibility study was conducted by an Exploration Geologist and a Mining Expert (Ross McMaster). This study was based on the previous Special Mining Lease 1 (SML 1 Mt Kare), but this Licence Expired in the year 2000.Thus, this feasibility study is proposed to be conducted to facilitate the creation of new Mining Lease for mechanized Alluvial Mining Purposes.
 
This study will also involve an integrated assessment of the needs of important sectors such as Education, Health, Infrastructure Development and small to medium scale businesses. That is, it will further analyze other avenues such as Cost & Revenue, Social & Economic Impacts  
 
SECTION 2: GOALS AND OBJECTIVES.
 
The purpose of this proposal is to find out the grades of alluvial gold and its contents in each of the Blocks outlined in annex 2. .It is also aimed at acquiring of necessary information for the enhancement of the creation of the New Mining Era.
 
This will particularly replace the previously expired Special Mining Lease (SML) that indeed never brought any tangible benefits. The nonprovision of the required benefits was mainly caused by the none development of the Alluvial by the Madison Enterprise (PNG Ltd) as the sole responsible Manager of the Alluvial Project.
 
Hence, the main objective of this proposed study is to facilitate the Alluvial Development Project which will directly repeal the immense tangible benefits to the concerned community. The additional purpose of the study is to identify new Alluvial Deposits so as to facilitate the collection of important data for the Alluvial Mining Development Plan. It will also help to maximize the returns from the fore planned Alluvial Development Project
 
The further aim is to attract foreign investors using the best report provided from the careful feasibility study conducted. Subsequently, it will also involve an integrated assessment of the needs of important sectors. That is, it will further analyze the avenues such as Cost & Revenue and Social & Economic Impacts. These are fully outlined below;
 
 COST & REVENUE ANALYSIS
 
It is vitally important to perform a detailed analysis of the financial costs and benefits of Alluvial Mining Project for all parties to the Alluvial Mining System.  
 
A major function of this analysis would be to determine what incentives might exist to attract donor organizations and/ or multi-million kina companies operating in the country to assist in the cost of implementation and an on-going maintenance of such a project under their community obligation responsibility.  
 
The alluvial assessment report must be compiled by a registered geologist to determine the reserves and create new mining lease.
 
The alluvial assessment study may take 3 months to complete. The registered surveyors to be engage to survey the new alluvial deposit areas to determine the size of the area containing alluvial reserves a part from current 16 AMLS. Finalization of the above studies may cost K250, 000.00.  Mining Lease application can be prepared by a registered geologist at the costs of K250.000.00
   
Development Proposal Plan can be submitted to the Mining Department using above studies for approval and the granting of the Mining Lease. Under Section 38.2 for full scale mechanize alluvial mining
 
FINANCIAL REQUIREMENTS FOR ALLUVIAL DEVELOPMENT
 
The financial requirements or conservative estimates for the projects calculated on the basis of the pre-feasibility study are about PNG Kina K12 Million, which includes the pre-feasibility, environmental impact and technical feasibility studies component, alluvial assessment report and community impact projects.
 
The Loan Proposal of K5 million requested from State through Public Investment Program or foreign financial investors for first stage alluvial development and for other impact community development projects identified under the feasibility studies
 
PRESENT CONSTRAINTS FACING ALLUVIAL MINING  
   
The Mt Kare alluvial Project is not able to secure a financier or investor for the following reasons:
 
The previous operator, Madison Enterprises PNG Limited has not been able to fund the alluvial development or secure funding for the project as required under the Mt Kare Joint Venture Agreement and let the SML expired.
 
Madison Enterprises PNG has also cut its monthly budgetary allocation of K15 000 funding support to the landowner company for last 14 years as a result, the company had financial problems that may lead the company into insolvency unless KDC resumes operation.
 
There has been no funding from the respective Provincial Governments or National Government to promote the activities of the Mt Kare Project and this is first of it kind requesting financial assistance from State.
 
KDC was crippling to obtain bank loans, off shore loans or secure other investors to invest due to Madison’s Registered Charge and the caveat over the SML blocking way for KDC performing is tasks until liquidation and KDC is free from encumbrances.
 
KDC failed to receive support from the respective Donor Agencies, Provincial Governments State or interested financers to fund the alluvial mining operations
 
KDC had no assets to trade as bank loans impossible due to Madison registered caveat and KDC may see light in the tunnel while insolvent company Madison is taken over by big companies but that did not happen and a company like Madison took over, causing further delays .
 
PROPOSAL TO RESUME ALLUVIAL MINING
 
The size of old SML is about 5010 hectares of land and the half size of the land is Potential Alluvial reserve areas. The areas in Map attached, Block A – D be regarded as reduced size of old SML and Alluvial potential areas.]
 
 
KDC TO APPLY FOR NEW MECHANIZE ALLUVIAL MINING LEASE
 
KDC with its new joint venture partner under the joint venture company Mt. Kare Alluvial Mining (MKAM)   can apply for Mining Lease for alluvial purposes to do Mechanize Alluvial Mining under PNG Mining Act Section 38.2 by providing the following reports to the Mining Advisory Board (MAB) for deliberations.
 
Mining Lease application, Alluvial Mining Assessment Report, Alluvial Mining Development Plan, Environment Impact Plan, Social Mapping Pre- feasibility studies & others
 
16 ALLUVIAL MINING LEASES (AMLS)
 
16 Alluvial Mining Leases (AMLS) were been held by 16 individuals expired in June 2010 that will be converted under new proposal  for Mining Department to renew them for MKAM to lodge new applications
 
16 AML HOLDERS LIST
 
N0.
AML HOLDERS NAMES
AML NO.
AREA SIZE HA
1
IWA WAYAPE
543
2.82 HA     (2)
2
JOE YALIA
539
2.39             (4)
3
ISONE HEWAPE
541
0.58 HA
4
IPISALI EKALI EKAPE
127
0.38 HA
5
PAWA KIMBIYU
538
1.05 HA       (7)
6
YARIME TIRAPULI
540
0.19 HA
7
EKA MULUNGU
537
0.31 HA
8
AGILE PURA
536
0.47
9
TIMOTHY TANKAUNO
534
0.77 HA
10
JIMMY LEMBOPA
532
1.12 HA      (6)
11
AMI LEMBOPA
533
1.23 HA      (5)
12
LUTHER IKI
535
0.7 HA
13
WAYUKU PARI
544
2.74 HA       (3)
14
AKOMA PEKE
542
3.4 HA         (1)
15
SITI AKOMA
545
0.86 HA
16
PETROSE KEMBATAN
126
0.42 HA
 
The figures 1, 2, 5, 10, 11, 13 and 14 showing larger areas more than 2- 3 hectares of land within each individuals AML Holders
 
 
 
 
 
 
 
 
 
      MT. KARE ALLUVIAL MINING JOINT VENTURE
 
 
MT. KARE ALLUVIAL MINING (MKAM)
 
 
 
 
 
INVESTOR
(MANAGER) 50%)
KARE PUGA DEVELOPMENT CORPORATION LTD (KDC) 50%
 
 
 
 
 
 
PUTA GOLD
LIMITED 10%
YOLO LANDOPA LIMITED   60%
LITIGANTS EQUITY
LIMITED   30%
 
 
 
 
 
The above structure to continue on the exploration license EL 1093 development  
 
FINANCIAL REQUIREMENTS
 
The initial financial requirements or conservative estimates for the projects calculated on the basis of the pre-feasibility study on alluvial resources are about K12 Million, which includes the Pre-feasibility, Environmental Impact and Technical Feasibility Studies, alluvial mining development plan, alluvial reserves determination studies, general survey of entire alluvial deposit areas within proposed Mining Lease, preparation with lodgment of Alluvial Mining Lease application
 
Cost component of K2 million is required for pre feasibility and ML application lodgment  However, it is possible that cost of actual projects identified may increase or decrease once full technical feasibility and environmental impact studies are completed and final alluvial mining studies and development plans are completed .
 
The alluvial management committees to manage the alluvial mining operations and
Please refer to the funding disbursement list below.
 
 
 
 
 
 
 
 
 
          PROJECT DESCRIPTION AND COSTINGS
 
  No.
PROPOSED PROJECTS
COSTS
1
To compiled Alluvial assessment report  
K500 000.00
2
Initial stage, Power Supply logistical support services 
K2 00 000.00
 
3
Pre – feasibility studies
 
K2 000 000.00
4        
Environment impact studies
 
K3 000 000.00
?5    
 Application preparation & lodgment ?
K200 000.00
?6          
Plant & mining equipment
K5 million
?7      
Workforce, logistical services & hiring of technical experts     
K1 million
?8        
Community development projects
K1 million
9          
Lodging & catering services  
K2 million
 
10      
Government services & risk safety
 
 
K120 000.00
11
 
16 x Alluvial Mining application fees
 
 
K80 000.00
 
 
Total
 
 
K12 million
 
Technical feasibility studies & new application lodgments
 
K2 million
 
 
 
 
                                   Financial schedule:  
 
months
Key objectives
Implementations officials
1- 31 May 2012 
Site visit by technical officers to inspect the project sites, mining lease application lodgment
Geologist, Mining Engineer & Environenlist  
1- 31 June 2012
Hydrogist and mining experts, mining development plan
Joint venture partners
1- 31 August 2012
Construction phase and alluvial mining operation  
Contractors & mining technical experts
 
EXECUTIVE SUMMARY
 
 KARE PUGA DEVELOPMENT CORPORATION LIMITED (KDC)
 
Kare Puga Development Corporation Ltd (KDC) is a landowner company formed in 1989 by CRA to develop alluvial resources under Mt. Kare Alluvial Mining (MKAM). KDC has 16 Directors and two shares that are held in Trust for landowners under Mt. Kare Landowners Community Trust Deed.
 
. KDC has two shareholder companies Puta Gold Ltd representing Tari SHP side landowners having 20 Directors and Yolo Landopa Ltd Paiela Enga side landowners having 23 Directors.
 
KDC was previously holder of Special Mining Lease (SML 1 Mt. Kare) for 5010 hectares of land and the SML expired in September 2000 without development due to the Manager Madison Enterprise (PNG) failed to develop the alluvial resources.
 
KDC is party to Mt.Kare Joint Venture Agreement (MKJV) and KDC entitle for 10% free carried interest to Mining Feasibility Studies in the hard rock explorations license (EL 1093).  KDC’s 10% share is held in trust by the company Madison Enterprises (PNG) Limited
 
Madison Enterprise (PNG) Limited is insolvent and the National Court appointed a Liquidator to liquidate the company after the PNG creditors filed a petition in the National Court for damages and the order was been granted on the 5th June 2009
 
The liquidator, James Kruse from DELOITTE TOUCHE TOHMATSU was appointed liquidator by National Court and currently the company assets of Madison Enterprise (PNG) Limited under the liquidator  
 
KDC IS THE ONLY LANDOWNER COMPANY RECONIZED BY STATE AND EL 1093 HOLDERS SINCE 1989 FORMATION
 
Kare Puga Development Corporation Limited (KDC) is a landowner company formed in 1989 by CRA to develop the alluvial Mining, KDC was a landowner representive company having 49% of (MKAM) Mt. Kare Alluvial Mining and CRA had 51% in MKAM, the Joint Venture Company formed to develop the alluvial resources
.
CRA assisted KDC to borrow K2.5 million Loans from BSP Bank former (PNGBC) Bank to fund 49% shares in MKAM. Special Mining Lease (SML) was granted to Mt. Kare Holdings a subsidiary company of CRA and later been transferred to MKAM  
 
In 1990 KDC Directors Wapula Akipe, Simon Kambe and a landowner Anton Pakena filed court actions against CRA to transfer the SML to KDC due to landowners not satisfied with CRA arrangements in MKAM
In 1992 gang riot at Mt. Kare damage part of CRA Camp and forced CRA to voluntary transfer the SML to KDC and let the PA 591 lapse under 1993 Mt. Kare Settlement Agreement
 
KDC signed Mt. Kare Joint Venture Agreement with Matu Mining/ Carpenters Resources NL that engaged Madison Enterprises (PNG) Ltd as Joint Venture Operator of the project and landowners were to have 10% free carried interest up to feasibility study of the hard rock under a nominated company.
 
KDC has two shareholder companies, Puta Gold Ltd representing Tari SHP landowners and Yolo Landopa Ltd representing Paiela Enga landowners. Both having two shareholders and two Directors each with beneficiary yet to be determine
 
SPECIAL MINING LEASE (SML) FOR ALLUVIAL PURPOSES
                               
The state granted a Special Mining Lease one (SML-1) over an area of 5010 hectares within Exploration Licence (EL.1093) to Mt. Kare Alluvial Mining on the 27th of September 1990. Mt. Kare Alluvial Mining (MKAM) is a consortium comprising CRA and the landowner company, Kare Puga Development Corporation Limited (KDC). CRA had controlling shareholding in MKAM, having 51% and KDC 49%.
 
KDC COMMENCED LITIGATION DISPUTING SML GRANTING
 
The landowners through KDC dispute the granting of the SML to Mt. Kare Holdings Ltd (CRA) in the National Court, filing Judiciary Review to reverse the decision that SML was supposed to be given to KDC. In 1992, CRA voluntary withdrew from the project site and transferred the SML wholly to Kare Puga Development Corporation Limited (KDC) and let the PA 591 lapse under the Mt. Kare settlement Agreement in 1994.
 
ALLUVIAL MANAGEMENT AGREEMENT
 
In 1992, KDC signed Alluvial Management and Hard Rock Agreement with Oakland Pty Ltd a subsidiary company of Ramsgate Resources NL, the Western Australian Company.  Oakland to have 40% of alluvial profits as the Manager and 90% on the hard rock while KDC to have 60% on the alluvial resource and 10% on the hard rock.
 
MT.KARE JOINT VENTURE AGREEMENT (MKJV)
 
In 1996, the MKJV Agreement was signed between Madison Enterprises (PNG) Ltd, Carpenter Pacific Resources NL, Ramsgate Resources NL, Oakland and Kare Puga Development Corporation Ltd on El 1093.
 
The Alluvial Management Agreement between Oakland Pty Ltd and KDC was assigned to Madison Enterprises (PNG) Ltd under the MKJV Agreement. Madison was the Manager and operator of the exploration licence EL 1093 and also the Alluvial Mining Manager  
MADISON AS MANAGER/ OPERATORS OF ALLUVIAL RESOURCES, FAILED IN THEIR DUTIES AND OBLIGATIONS ESPECIFICALLY:
 
Madison breaches both the (MKJV) Mt. Kare Joint Venture Agreement and the Alluvial Management Agreements by not performing the duties required under the Agreements:
 
1. The Special Mining Lease (SML 1 Mt. Kare) expired in September 2000 after Madison Enterprises (PNG) Ltd failed to develop the alluvial (SML).
 
2. Madison as the Alluvial Manager/ operator, failed to pay annual rental fees outstanding with the Mining Department, more than K300,000,00
 
3. Madison failed to submit Alluvial Mining Development Plan to develop the SML as the manager of the alluvial project.
   
4. Madison failed to lodge SML renewal application before or after expiry of SML
.
5. Madison failed to lodge new application for Alluvial Mining Lease for Alluvial Purposes (ML) under the 1992 Mining Act Section 38.2
 
6. Madison has registered Caveat over the SML that stops KDC from entering into new arrangements with any new developer to develop the SML.  
 
7. Madison’s Court Order OS No. 241 of 1999 stops KDC from dealings or removing the registered caveat lodged by Oakland over the SML held by KDC.
 
8. Madison failed to defend the Court Order taken by KDC to extend the SML from 27 September 2000 to 27 September 2001 that State invalids the Order on the 14th February 2001.
 
9. Madison submits 16 AML applications for Tributary licence that was granted to the applicants and that denying interests held by KDC under the previous SML. ?  
 
10. Madison failed to honor the EL 1093 Renewal Condition  MOU signed in 1999 between the then Mining Minister and Madison Enterprises (PNG) Ltd, for Madison to develop the alluvial resources and use its 40% alluvial profits to pay compensation to landowners
 
11. Madison Hired Alluvial Mining expert, Rose Mckmaster’s ALLUVIAL ASSESSMENT- SML 1 STATUS REPORT downgraded the alluvial reserves to 2 million ounces from CRA reported in 1990 of 7..5 million ounces  
 
 
 
 
 
EXPIRY OF SPECIAL MINING LEASE (SML)
 
The Special mining Lease 1 Mt. Kare expired in September 2000 without development due to Madison’s failure. KDC took out court order to extend SML from expiring for one year. The SML was extended from 27th September 2000 to 27th September 2001.
 
The court order gave KDC amble time to look for new developer to submit alluvial development plan, pay off SML rental fees outstanding and lodge new application to renew the SML.  Annexure Letter A Copy Court Order OS No. 574 of 2000
 
Matu Mining and Madison obtained restraining order against Registrar from entertaining any investors with KDC as Caveat registered by Oakland over SML in full force. Annexure Letter B Copy Court Order OS No. 241of 1999
 
In March 1999, Madison signed a Memorandum of Understanding with the Mining Minister in March 1998, EL 1093 renewal condition for Madison to Develop the Alluvial resources on the SML and Keep Madison’s 40% alluvial profits in the trust account to pay compensation claims by landowners. Annexure Letter C MOU      
 
On 14th February, 2001 State filed a Motion to Set Aside OS No. 574 of 2000 and Court Order to that effect was granted and KDC miss out completely on the alluvial development for unknown actions by the State
 
KDC made an attempt to apply for AML under Mt. Kare Gold Development was also been failed by Mining Department due to Mining Act not allowed AML license under  a company or ILG Incorporated Land Group    
 
Mt. Kare alluvial mining limited (MKAM)
 
The company MKAM was incorporated on the 23rd May 2007 as subsidiary company to joint venture with investors for alluvial development.
 
MKAM was formed by KDC as its subsidiary company for carrying out business under its name, mostly alluvial development on site and MKAM will be use as Vehicle Company for KDC for all its business deals.
 
The shares in MKAM are currently held in trust by the Managing Director Simon Kambe as registered Trustee for KDC. The Investor to take 50% shareholding in MKAM and 10% as Management fees and profits are shared after the costs..  
 
 
 
 
 
 
 
MT. KARE ALLUVIAL MINING STRACTURE
 
MT. KARE ALLUVIAL MINING (MKAM)
 
 
 
 
 
INVESTOR
(MANAGER) 50%)
KARE PUGA DEVELOPMENT CORPORATION LTD (KDC) 50%
 
 
 
 
 
 
PUTA GOLD  
LIMITED 10%
YOLO LANDOPA LIMITED   60%
LITIGANTS EQUITY
LIMITED   30%
 
 
 
 
 
 
KARE PUGA DEVELOPMENT CORPORATION LIMITED (KDC).
 
HOLDING COMPANY FOR
PUTA GOLD & YOLO LANDOPA
HAVING EQUAL SHARE
 
JOINT VENTURE COMPANY MT. KARE ALLUVIAL MINING (MKAM
TO HOLD THE MINING LEASE FOR ALLUVIAL PURPOSE
 
LITIGANTS EQUITY LIMITDE
 
A COMPANY OWNED BY LITIGANTS
SIMON KAMBE, WAPULA AKIPE,
ANTON PAKENA & JOE YALIA
 
JOINT VENTURE COMPANIES TO APPOINT
ONE DIRECTOR EACH TO MKAM BOARD
 
NOMIATION OF YOLO LANDOPA DIRECTORS
 
W e the clan members of the following clans, Landopa Komai Ayalu clan. Landopa Komai Terewana clan, Landopa Leyapi clan. Landopa Pakea clan, Landopa Pakea Lambia and Alliana clans, Heli Aka Asabi clan, Heli Aka Akime clan, Heli Limi clan, Heli Minipa clan, Heli Yapale clan, Pipi Yolo and Yageyame Clans, Pulumaini have agreed at meeting held at Andita Village on  21st January 2008 and resolved to appoint or nominate these Directors as our clan representatives on Yolo Landopa Board
 
We also resolved that Yolo Landopa shares held by two other individuals none landowners should be transferred to Simon Kambe and Joe Yalia, to hold in trust for landowner clans
 
 
Nomination of Directors
 
Director names
clan
Education
Current jobs
    Remarks
Tom Peke
Labia/Yolo
Grade 10
Unemployed
 
Iluba Waiyape
Leyapi/Palane
No school
unemployed
 
Obert Kend
Yolo/Heli Asabi
Grade 12
High schoolteacher
real estate agent
Gabriel Lembopa
Pakea Umbi
No school
Clan leader
 
Anton Wayuku
Yolo Walepa
No school
unemployed
 
Andria’s Timu
Ayalu Komai
No school
Clan leader
 
Yange Tuyape
Pende Leyapi
No school
unemployed
 
Hangu lupaya
Alliana Pakea
No school
MKJV camp security
 
OSI Lewape
Leyapi Palane
No school
MKJV camp security
 
Pawe Akipe
Leyapi Pako
No school
Clan leader
 
Tom Tarali Tagira
Pulumaini
No school
Clan leader
 
JOHN TARALE
AMO Komai
Grade 10l
MKJV
continue School
Koayupa Andape
Terewana/Waiyali
No school
Andita council
 
LUPI YALIA
Pae
NO School
business man gold buyer
 
Alita Walu
Heli Yapale
No school
carpenter
 
Ekamari Ekanjia
Pulumaini/Lambia
No school
PJV Community Affairs
 
Eric Kapa Angupa
Heli Aka Akime
Grade 6
unemployed
 
Moses Isapa Lape
Pakea Umbi
No school
unemployed
 
Iso Kakulaku
Yomondaka
GRADE 10
unemployed
 
Moses Tua
Yomondaka
Grade 10
Stop & Shop Boroko
 
Gideon  Ayu
leyapi Palane
Grade 12
KDC Secretary
 
Robert Tony
leyapi Pae
Grade 6
businessman
 
Kalyson Iki
Kabiam Pakea
Grade 10
businessman
 
 
The meeting resolve that above nominated members be appointed as Directors for Yolo   Landopa limited within this month.
 
We under signed are the principal clan members who have nominated above Directors in our meeting held at Andita in the presents of Porgera Paiela District Administrator  
 
 
 
 
 
 
 
 
 
 
PUTA GOLD STRACTURE
 
N0.
Directors Names
Clan
Education
jobs /qualification
1
Michael Parali
Apai Pujoro
Grade 6
Pastor United Church
2
Iluba Waiyape
Leyapi/Palane/ Heli
No school
Welder,  
3
Tekela Para
Heli Aka Aliabe
No school
Clan leader
4
Ian Arinako
Tuanda/Yageyame
No school
Clan leader
5
Takira Lenewa
Pipi Yolo
No school
Clan leader
6
Gibson Andane
Luni Pujoro
Grade 10
Clan leader
7
Angai Haguai
Puluma Pujoro
No school
Clan leader
8
Nelson Gori
Heli Aka Aliabe
No school
Clan leader
9
Thomas Kingaba Andale
Luni Hayawi
No school
Clan leader
10
Gibson Andane
Pipi Yolo
No school
Clan leader
11
Alex Fermin
Luni Pujoro
Grade 10
Clan leader
12
Thomas Yago
Pujoro
No school
Clan leader
13
Yago Pepe
Pujoro Luni
No. education
Clan leader
14
Janet Koariama
Luni Hayawi
Grade 6
House wife
15
Moses Hondole
Luni Hayawi
No. education
Clan leader
16
Ngule Paro
Heli Aka Aliabe
No. education
Clan leader
17
Belau Ngibe
Toma
N0. education
Clan leader
18
Kaka Tomaki
Hewanali
No. education
Clan leader
19
Lulu Aniya
Hewanali
No. education
Clan leader
20
David Hogogo
Pujuro Karita
Grade 8
Clan leader
21
Peter Tatape
Pujoro Luni
No. education
Clan leader
22
Lairape Haguai
Pujoro Apai
No. education
Clan leader
23
John Angawai
Pujoro Waiyali
No. education
Clan leader
 
 
The Puta Gold Limited represents the major tribes of
Pujoro and
Yomondaka   
 
The Pujoro tribes and its major clans are living in the Hela Province except the two major clans, Waiyali and half of Apai clans are living in the Paiela valley
 
The Yomondaka tribe is made up the following major clans
Awale
Pone
Ipaliaka
Wandipe
Yomondaka clan members are all living in the Paiela valley  
 
 
 
 
KARE PUGA DEVELOPMENT CORPORATION LIMITED STRACTURE
 
KARE PUGA DEVELOPMENT CORPORATION LIMITED (KDC)
 
 
 
 
 
MT. KARE ALLUVIAL
MINING LIMITED
SUBSIDIARY COMPANY
MT. KARE LANDOWNERS
COMMUNITY TRUST DEEED
 
TRUSTEE BOARD YET TO BE ESTHABLISHED
 
 
 
 
 
 
 
 
 
KDC DIRECTORS
 
1. AKOMA PEKE            
2. MICHAEL PARALI
3. IAN ARINAKO
4. TAKIRA LENEWA
5. TEKELA PARA
6. GIBSON ANDANE
7. ILUBA WAIYABE
8. WAPULA AKIPE
9. SIMON KAMBE
10. MARA PENDE
11. WAYUKU PARI
12. NANDA LAPE
13. AMI LEMBOPA
14. JOHN TARALE
15. BEN HEWAPE
16. ANGAI AGUAI
PUTA GOLD LIMITED
TARI SIDE L/OWNERS
 
YOLO LANDOPA LIMITED
PAIELA SIDE LANDOWNERS
 
 
 
 
20 DIRECTORS  
 
23 DIRECTORS
 
 
 
 
 
 
 
 
 
 
 
 
 
Attachments:
 
KDC Caveat &Maps
Other alluvial supporting documents
KDC, Puta Gold, Yolo Landopa & MKAM Documents