Pursuit, W. America explore in PNG

Western America Resources (ASE) has placed shares privately with International Pursuit (TSE) in order to raise funds for exploration of a gold-copper property in Papua New Guinea.

Western America has already agreed to acquire Magma Mines, an Australian company, which can earn a 51% interest in the Ofi Creek property on New Guinea by spending A$2 million ($2.1 million) on exploration by March 3, 1998.

The property, a 1,160-sq.-km area 50 km north of Port Moresby, has a porphyry copper-gold deposit with a preliminary resource of 85 million tonnes grading 0.4% copper and 0.6 gram gold per tonne. It is open at depth and in three lateral directions.

Magma Mines has the option to earn its interest from BHP Minerals. The major has spent A$1.8 million on the property so far and retains a right to buy back up to 75% of its interest at a price based on Magma’s exploration and development expenditures.