Papua New Guinea refuses Frontier’s request for new exploration sites
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Papua New Guinea junior Frontier Resources has had two exploration licence applications (ELAs) rejected — without reason.
“No reasons were given for these unreasonable decisions regarding refusing ELAs [exploration licence applications] 2476 and 2477,” boss Peter Mc Neil told investors.
The two applications cover ground in the D’Entrecasteaux Islands off the eastern tip of PNG.
Frontier (ASX:FNT) is exploring for copper, gold and molybdenum along the Papuan Fold Belt of PNG, which hosts large copper and gold mines like Ok Tedi and Barrick Gold’s Porgera gold mine.
The company is facing growing pressure, with its cash reserves falling to $49,000 at the end of the December quarter.
Frontier has had to secure a $50,000 loan to tide it over until it can square away a $6 million placement with one of the largest non‐banking conglomerates in China, Forise Group.
The company has until March 15 to complete the placement, which is subject to regulatory and shareholder approvals.
Frontier’s share price has slipped back 69.1 per cent from the 52-week high of 5.5c it was trading at in mid-February last year. Shares closed at 1.7c on Monday.
In September last year, Frontier revealed it was changing its strategy because it lacked the money to roll out its “ambitious” plans.
The exploration program for the Muller project has had to be pushed back until mid-February due to a delay in a court hearing for the renewal of the licence.
Frontier has been contacted for comment.