Nickelore halts Papua gold, copper project due diligence

Australia firm Nickelore Limited said on Friday that it has halted its due diligence program in the Papua Gold and Copper Project (PGCP) in Papua until further notice due to a legal dispute between the vendor of PGCP, InterAsian Resources SA and the Indonesian tenement holder.

As a result, InterAsian has granted an extension to Nickelore of the option period and deferral of payment of the option consideration, the company said.

Subject to a satisfactory resolution of the dispute, Nickelore intends to carry out further technical due diligence prior to making a decision of whether to exercise the option.

In August 2009, Nickelore signed a Heads of Agreement to acquire a 51% stake in PGPC. (denny)