EXPLORATION 1999 – Western Pacific finds partner

SMC Resources, an Australian gold producer, has agreed to issue 31.5 million of its shares to Western Pacific Gold (WPI-A) in return for the junior’s land package in the Solomon Islands.

Though still subject to various conditions, including shareholder and regulatory approvals, SMC will swap the shares for a subsidiary of Western Pacific, which in turn holds the Solomon Island properties. The land package is believed to be prospective for copper, gold and gold-rich polymetallic deposits.

Through another subsidiary, Magma Mines, Western Pacific will continue its exploration activities in Papua New Guinea, where gold-copper deposits are the main target.

Western Pacific shareholders will end up holding about 31.5% of SMC’s issued capital. The Australian company produced more than 12,000 oz. gold from operations in the Charters Towers area of Queensland during the last six months of 1998, and is planning further expansion.

The transaction is expected to be completed by end of April, and will be followed by the share distribution in late May. Shareholders will vote on the proposal at a special meeting scheduled for April 12.