Geoff Loudon - founder of Lihir Gold after discovering the multi-million ounce Lihir gold deposit in PNG

Geoff Loudon - founder of Lihir Gold after discovering the multi-million ounce Lihir gold deposit in PNG

New Zealand Energy (TSXV:NZ) and L&M (recently acquired by billionaire investor Geoff Loudon’s private energy company, New Dawn Energy) have announced the formation of an 50/50 JV on the Tariki, Waihapa and Ngaere licenses, the Waihapa Production Station as well as the associated pipelines and infrastructure.

The JV will see L&M pay New Zealand $18.25 million and will see New Zealand remain the operator of the licenses and the production station.  As for the Waihapa exploration assets, a management committee comprised of representation from each company will decide the fate of those assets in due time.

John Proust - CEO of New Zealand Energy Corp

John Proust - CEO of New Zealand Energy Corp

“L&M has been exploring and operating in New Zealand since 1969 and brings financial strength combined with business and technical expertise to the joint venture,” said New Zealand Energy CEO & Director, John Proust.

New Zealand has been under attack in the markets falling from a high of over $3.50 per share in early 2012.  Although this cash injection and validation helps, the company still needs another $12 million to close the acquisition of the assets from Origin Energy Resources.

Mr. Loudon seems intrigued by the exploration potential these assets hold, but also from “the strategic marketing and business opportunities presented by the Waihapa production station,” Mr. Loudon stated in the release.

NZ has a few more hurdles to overcome, but this partnership is a step in the right direction and demonstrates management’s ability to execute.

 

Related: Filings show Mr. Loudon is a large shareholder of Lowell Copper.