Adyton and East Vision International Holdings Execute US$9.5M Investment and Development Agreement for the Fergusson Island Gold Project

TSX Venture Exchange: ADY
OTC: ADYRF
FSE: 701GR

PORT MORESBY, Papua New Guinea, May 13, 2024 /CNW/ – Adyton Resources Corporation (TSX.V: ADY) (“Company”) is pleased to announce that it has entered into a binding Investment and Development Agreement (“IDA”) with East Vision International Holdings PTE Ltd (“EVIH”) effective May 13, 2024 for the development of its Fergusson Island Gold Project (the “Project”). Pursuant to the terms of the agreement, EVIH has the right to acquire up to a 50% ownership interest in the Project through a total investment of up to US$9.5 million, with US$8.5 million to fund Project expenditures and US$1.0 million to be paid to the Company, of which US$500,000 was paid to the Company upon execution of the IDA.

Managing Director Tim Crossley said, “This is a terrific outcome for Adyton, the people of Milne Bay and particularly the people of Fergusson Island. This agreement has no impact on the capital structure of Adyton or the ownership of our flagship Feni Island project which hosts a substantial gold resource with significant additional copper and gold prospectivity, while providing a full financing pathway for the Fergusson Island Project to development and cash flow with Adyton retaining a 50% economic interest.  Furthermore, EVIH has deep mining pedigree though their Sichuan province mining business and have also demonstrated project execution experience in PNG through their recently constructed Edevu Hydro power station project. We are excited to work with EVIH, local landowners, the Provincial Government, MRA and CEPA to progress the Fergusson Island Gold Projectto being shovel ready.”

Tim Crossley continued, “The Fergusson Island projects are advanced exploration projects with Wapulo developed as a mine in 1994 and then later closed due to low gold prices. The larger and higher grade Gameta resource is likely to be the focus of first production, however, with the projects being only 30km apart, they are most likely to be progressed concurrently with the tenements connected by a proposed road. With funding now secured, feasibility work will commence in earnest.”

EVIH Chairman Mr. Lou said, “We are greatly looking forward to working with Adyton on the Fergusson Island Gold Project and believe our company can bring significant value to the projects through low-cost operations and advanced processing expertise and we are ready to immediately deploy our resources to Fergusson Island.”

The Fergusson Island Project

The Project comprises the Wapolu and Gameta advanced Exploration Licenses on Fergusson Island in Papua New Guinea for which the Company has previously reported the following mineral resource estimate:

Full story available on Benzinga.com