PNG Gold Corporation (the "Company") The Company announces that after having followed an extensive sales process for the sale of its drilling equipment over the past two years and in the absence of any other concrete offers, it has sold its drilling equipment for CAD$229,950. The sale is a related-party transaction as two directors of the Company, John Detmold and Bryan Nethery, have a relationship with the purchaser. Both Messrs. Detmold and Nethery disclosed their interest in the transaction to the Company's board of directors, and abstained from voting. The transaction was unanimously approved by the Company's remaining directors.
The related-party transaction is exempt from formal valuation requirements pursuant to section 5.5(a) of Multilateral Instrument 61-101 and is exempt from minority's approval requirements pursuant to section 5.7(a). The transaction was negotiated and subsequently closed within days, as the Company required working capital pending completion of the private placement, hence the Company did not file a Material Change Report 21 days prior to the completion of the transaction.
On Behalf of the Board of PNG Gold Corporation
Greg Clarkes, Chief Executive Officer