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North Queensland Metals (ASX:NQM) Announce Completion of Pajingo Gold Mine Acquisition
Brisbane, Feb 14, 2008 (ABN Newswire) - North Queensland Metals (ASX: NQM) has today completed all contractual obligations in relation to the acquisition of a 60% interest in the Pajingo gold mine, approved by NQM shareholders on 4 February 2008. $4.4 million has been paid to Newmont Australia Pty Ltd to complete the acquisition for a total consideration of $15 million comprising $9.4 million cash and the balance in NQM shares. NQM effected successful capital raisings of $4.6 million and $7.5 million in December 2007 and February 2008 respectively.
The Pajingo acquisition has changed NQM into a significant gold producer. Operations at Pajingo have progressed ahead of expectations since NQM became the operator on 30 December 2007. The first gold was poured in late January, and the second pour, yesterday, realised 2,961oz of Gold and 3,208oz of Silver. All the gold production is unhedged.
Pajingo is scheduled to produce approximately 300,000 ounces of gold over a five year mine life. Re-estimation of the near mine reserves and resources is currently in progress with an announcement on this expected in the current quarter.
About NORTH QUEENSLAND METALS LIMITED
North Queensland Metals is an Australian based and listed mining company with a focus on activities in north Queensland. The company has a 60% interest, and is the Manager of the Pajingo Gold Mine near Charters Towers. In addition to its gold operation, North Queensland Metals has a 100% interest in the Baal Gammon copper-tine project near Herberton west of Cairns, and is pursuing a strategy of developing several mines in the Herberton area to feed ore to a central milling facility.
North Queensland Metals' tenements in far north Queensland cover the world class Pajingo epithermal gold system as well as the Herberton mineral field which includes hundreds of historic tin and base metal mines as well as being prospective for tungsten and molybdenum.
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