Latest Headlines
RESOURCE STOCKS
✕
CAPITAL MARKETS

Pacific moves on Nicolsons financing

PACIFIC NIUGINI has secured a series of financing terms for its joint-venture Nicolsons gold proj...

Jack McGinn

This article is 10 years old. Images might not display.

Under a Heads of Agreement (HoA) between the JV partners, Pacific will seek 100% of the financing required for the project and offer the same financing terms to Bulletin, which will contribute its equity share to finance repayments, hedging requirements and any equity expenditure prior to drawing loan funds.

In exchange, Pacific will take ownership of a further 15% of the Nicolsons project from Bulletin, giving it an 80% stake immediately following the execution of the agreement.

Pacific will continue to sole fund the project until January 1, after which Bulletin will contribute costs correlating to its 20% ownership. Pacific will no longer have to sole fund the first $A4 million in the project prior to earning 80% interest and Bulletin’s cost contribution date will be brought forward.

Bulletin chairman Paul Poli said his party would benefit from the conditions.

“This agreement allows Bulletin the best opportunity to finance its JV requirements and benefit from superior loan terms compared to those it could likely secure in its own right as a minority party,” he said.

“It makes sense to work constructively with Pacific in order to generate the best possible return for our shareholders and minimise any dilution of our share capital.”

The agreement followed a financing proposal secured between Pacific and the Commonwealth Bank of Australia (CBA) on Friday which would provide funds for the refurbishment and development of the project.

Under the proposal CBA would complete a secured gold prepay of up to $A11.5 million and a mandatory hedge facility.

Pacific intends to fund the equity for this facility through a one-for-four rights issue at 5c per share, which would raise about $3.93 million if fully subscribed.

The amount of ounces repayable to CBA is dependent on the gold price once the sale is financed, with the facility to be repaid over 23 months commencing nine months from financial close.

The hedging facility will provide payment for quarterly deliveries over the same period as the secured prepay, expected to be about 20% of forecast production at current gold prices.

Execution of this agreement is subject to due diligence, approvals and the payment of equity by Pacific, while execution of the HoA is subject to approval by CBA.

Shares in Pacific Niugini fell 5% this morning to A5.7c, while Bulletin shares were unchanged at 1.5c.

RELATED ARTICLES
TOPICS:

< PREVIOUS ARTICLE

Metals mostly lower

NEXT ARTICLE >

Newcomers in 2014

FROM OUR PARTNERS

View more
RESOURCE STOCKS

Warriedar Resources: unlocking significant resource growth potential in a premier WA gold region

RESOURCE STOCKS

Growing gold inventory adds shine to Emmerson

MOST POPULAR
1
DRYBLOWER

Dryblower on overseas lures for Australian miners

2
MINERS

Northern Star's Tonkin unsurprised and unfazed by Gold Road's De Grey silence

3
MINERS

Another hiccup in Adriatic's Vares ramp-up

4
PRECIOUS METALS

Records continue for gold

RESEARCH

lock Premium subscribers only

View more

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

MiningNews.net Research Report 2025

The MNN Research Report 2025 provides insights into critical mining themes in Australia/Oceania, including top projects, C-suite priorities, risk, ESG performance and investor sentiment.

editions

Mining Journal Intelligence: Investor Sentiment Report 2025

Exclusive insights into the plans, priorities and preferences of 130+ mining investors and top factors influencing investment decisions in 2025.

editions

Mining Journal Intelligence World Risk Report 2024 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 117 jurisdictions globally, assessed across six risk categories and an industrywide survey.

editions

Mining Company ESG Index: Benchmarking the Future of Sustainable Mining

The Mining Company ESG Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

Content
about
SOLUTIONS
legal

THE ASPERMONT BRAND PORTFOLIO

Copyright © 2025 Aspermont Ltd. All rights reserved. Aspermont Limited (ABN 66 000 375 048), PO Box 78, Leederville, Western Australia 6902

Login