Papua New Guinea-owned Aiabba Minerals seeks to raise capital

Aiabba Minerals is a mining company fully owned by an indigenous community in Papua New Guinea. Such an ownership model could become a best practice model for the future development of the country’s resources, Executive Chairman and Managing Director Moses Mondowa tells Business Advantage PNG.

Aerial view of Aiabba mid camp. Credit: Aiabba 

Aiabba Minerals’ current major shareholders are the 12 clans of the local indigenous community in East Sepik Province, which invested in the company through the Malaumanda Development Corporation.

The mining exploration company was initially a joint venture between Afrocan Resources Gold (PNG) and the MDC. An exploration license, EL 2421 (Malaumanda), was granted to the venture in May 2016.

The entity was then incorporated as Aiabba Minerals (Aust.) Pty Ltd in Australia, with the aim of creating a portfolio of Papua New Guinean exploration properties. That company is seeking to raise finance, both locally and overseas.

‘It is important for the local community to invest in local companies and their projects.’

The EL 2421 tenement covers 224.9 square kilometres of the southern parts of East Sepik province towards the Central Highlands.

It is believed the area holds potential for gold and copper deposits, porphyry copper-gold-molybdenum deposits and structurally-controlled gold lode deposits.

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The company claims that there is the potential for ‘more than one million ounces of gold, or gold equivalent’.

Aiabba Minerals’ Moses Mondowa. Credit: Aiabba Minerals

Investment

Mondowa says that for Papua New Guinea’s resources and investment sectors to be successfully developed, it is important for the local community to invest in local companies and their projects.

‘There is an educational piece here, where people in the country must learn to move away from a cash culture and, instead, see the long-term value of buying shares.’

‘I think people are starting to understand the potential value here.’

Mondowa believes that buying shares so as to earn a dividend represents a sound option in Papua New Guinea’s current difficult economic environment.

‘It’s vital that people are invested in these projects with strong potential and profit from the success of business in their region.’

‘I think people are starting to understand the potential value here,’ he says.

Mondowa hopes Aiabba Minerals will act as a ‘best practice’ example of a Papua New Guinean company on how to engage with the local community.

Capital raising

Aiabba Minerals is planning to raise finance of A$2 million (K5.1 million) to purchase a drill rig, fund the drilling program at the Malaumanda project and pay for company expenses in 2018.

‘We need to work with foreign investors to support us in the development of these projects.’

Eight prospects have been outlined, with the company aiming to send a crew to prepare drill targets at Malaumanda in March or April of this year.

Working with local shareholders and foreign cornerstone investors to list on the Australian Securities Exchange will be fundamental to the company’s success, he explains.

While the local community is supportive of the project, Mondowa says they must continue to educate local people on the long-term value.

‘We need to work with foreign investors to support us in the development of these projects, but it is also important that the local community is profiting from the project’s success.’

Comments

  1. Eric Mitiam says:

    thank you Mr. Mondowa & Team just heard of this on TV last night & decided to check online. will send you test email.

  2. Les Emery says:

    Moses,
    Wishing you and your team every success with your venture.
    Best regards
    Les Emery

  3. Santosh Nair says:

    Since you seem to be driving the point of local investments in local firms I recommend that you approach domestic financial institutions for your initial funding requirements. That way you will be able to better manage your investments because you are not exposed to FX risks and ROI driven by the demands of the external investors. Plus that would provide an investment option for local financial institutions.
    Speaking to public to invest in the shares may prove to be a daunting tasks but with a few anchor investors like, say, Nambawan Super or NASFUND that may encourage wealthy locals to invest in it.
    Will be keen to talk to you.

    • Dear Mr. Nair,
      Thank you for your comment and suggestion.
      We will approach the domestic financial institutions when we have the prospectors ready, with locals do not know how to take risks when overseas investors do. We have insurance brokers and very experienced ASX listed former and current board members well aware of the risk factors. When will locals start believing themselves with a culture of “seeing is believing”. We are not really talking to the public as yet because this will happen when we will, during IPO. We have tried to talk to friends about the opportunity but there has been delays. However, we are rolling on plan B and I wish the locals knew and realize the opportunity pre-IPO but it seems little too late. We need to move on.

  4. This is an excellent opportunity for the local people of PNG and the country as a whole… Please Let’s think about the future of our country and our children… let’s not think about cash and what we will consume today which will not last… Please I appeal to you Papua New Guineans, Please buy shares, this kind of opportunities were so long hidden by our greedy leaders and the government in which it takes a real man and a true patriot to put this out for the love of his country and it’s people… I pray God has not forsaken us…he will bring us forward and he is doing it… I salute you Director Mr Moses Mondowa and the people of Malaumanda for bringing up the great project…

  5. Locals need to buy shares now under the pre-IPO seed capital at the lowest rate of A$0.02c and A$0.05c respectively per share with limited volume available. The IPO would be going at A$0.20 minimum per share.

  6. Muzeri Mugang says:

    I salute the communities for having faith in their local company and investing in it. It shows “waking up” in the level of Financial Literacy in PNG. Also it shows the outcome of a product of true Leadership.
    Hope to invest soon.

    • Muzeri, thank for your favorable comment. Everyone needs to buy invest and become a shareholder of a resources company with the company’s flagship Malaumanda gold-copper project with potential for a world class deposit is located 60km north of Porgera mine and 100km east of the massive Frieda river deposit. Papua New Guineans should become investors in the extractive industry and especially highlanders need to their reduce social obligations.
      Hope to hear more from like minded.

  7. Richard says:

    This is an excellent undertaking by the local community …Yes we the national work force of PNG would help if and when needed to take it to the next step and hope for the best and prosperity with its endeavours…Hope to buy some shares soon.

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