News: Pacific Niugini managing director buys more shares on market

Pacific Niugini (ASX:PNR) managing director Paul Cmrlec has purchased 250,000 ordinary shares of the company in on market trade.

He paid a total of $16,250 for the shares, or $0.065 each, which take his total shareholding up to 807,929 ordinary shares.

Cmrlec also holds 2 million options exercisable at $0.09 and expiring on 21 Nov 2016 as well as 2 million $0.00 performance rights 21 Nov 2016.


Nicolsons Project

The company could pour first gold from the Nicolsons Project near Halls Creek, Western Australia, in mid-2015 with total pre-production Capex estimated at just A$10.7 million.

Total sustaining cost is estimated at A$854 per ounce while capital P&E cost is expected to be about A$107 per ounce.

Other key takeaways include:

- Net Profit (after-tax) of A$50 million (at an assumed gold price of A$1,400 per ounce);
- NPV (8%) of A$42 million;
- IRR of 162%; and
- Initial mine life of 4.5 years, including 6 months of pre-production activities.

PNR has also declared a maiden Mine Reserve of 435,455 tonnes at 6.17 grams per tonne gold for 86,362 ounces of gold.

Recently, the company notified Bulletin Resources (ASX:BNR) it had completed its first $1.2 million of expenditure to increase its interest in the broader Halls Creek project to 65% from the current 49%.

This was achieved six months ahead of required timing and gives it about 18 months to April 2016 to spend a further $1.2 million to reach 80% ownership in the project.

Pacific Niugini will be presenting at Proactive Investors' 'Investor Luncheons' on 11 November in Melbourne and 12 November in Sydney. Seats are limited, register here to confirm your place: Melbourne - Sydney.