PNG Gold Corporation said it plans to undertake engineering studies to determine whether to proceed with the detailed engineering design for the construction of a re-refined base oil plant.
The company announced on November 2 that it plans to complete a non-brokered private placement of up to CAD3,000,000 (USD2.2 million) to provide additional working capital for the company, as well as sufficient funds to evaluate the oil recycling technology that it currently has rights to, as a result of loans it is has extended to Verolube Inc. VeroLube is a provider of used motor oil re-refining services using its patented and certified ReGen™ re-refining process which can re-refine used motor oil into Group III base oils.
PNG Gold said it has already identified a refinery site in central Alberta, Canada, which could include an off-take agreement for the finished products from the proposed plant. This refining location has infrastructure in place, which could potentially save the company millions in construction costs, PNG Gold said in a statement.
In addition, PNG Gold said it has identified other potential customers who could enter into off-take agreements for the purchase of the full production of the proposed plant.
The company said it has also been able to identify federal and provincial loans and grants for the project.
PNG Gold Corp. is incorporated under the laws of British Columbia, Canada. The company’s shares are listed on the TSX Venture Exchange and trade under the symbol PGK. PNG Gold’s principal business activities are related to its 100% interest in the Normanby exploration license and the Sehulea exploration license, on Normanby Island, eastern Papua New Guinea.