NGM Resources Limited (ASX: NGM) is pleased to announce it has been officially awarded an extension of time for its three exploration permits in
Indo Energy Limited, the Company’s wholly owned subsidiary and holder of the permits, was recently officially advised by the Minister of Mines and Energy for
Background
The Company was officially awarded its permits in August 2007 for an initial period of three years. In December 2007 the Niger Government declared mise en garde (“state of alert”) in the Arlit-Agadez region due to local separatist activity. At this time the Company declared force majeure but also attempted to commence field work on two occasions in 2008 before safely recommencing full field activities in May 2009. The mise en garde was lifted in November 2009 and the Niger Government commenced a review of those Companies which had continued working or attempted to work during the mise en garde period to assess an equitable extension period for the permits.
Extension Details
The extension grants the Company a further twenty seven months beyond the initial term, now making the expiry date of all three permits December 2012. In practical terms the Company is currently in month seven of its first year commitment and past expenditure in all permits is now meeting up to year two commitments, meaning the Company is well ahead of its expenditure requirements.
The Company thanks the Government and citizens of
Current Drilling
The Company advises the current drilling contract term of 4,000 metres has been extended, subject to rig availability and weather, to further test mineralisation at one of the Company’s northern prospects. Initial results are expected to be released within two weeks.
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