Corporate Structure
Group Corporate Structure
PanAust is a public company that is incorporated and domiciled in Australia. The Company's operating assets and associated commitments are located in Laos and Thailand and held through a structure of subsidiary companies, illustrated below:
Corporate Structure in Laos
PanAust holds its Lao assets through the Lao-registered company Phu Bia Mining Limited (PBM).
PBM has a Mineral Exploration and Production Agreement (MEPA) with the Government of Laos. This agreement regulates exploration and mining within a 2,600 square kilometre contract area (the "Phu Bia Contract Area"), the southern-most boundary of which is located 120 kilometres north of the Lao capital, Vientiane. All of the Company's mining and exploration activities in Laos occur within the Phu Bia Contract Area.
PanAust owns a 90% interest in PBM after the Government of Laos exercised a right to acquire a 10% interest. The Government of Laos will fund the acquisition of its interest through future dividends from PBM. The Company views the Lao Government’s 10% interest as consistent with the belief that the Company’s activities should result in benefits to all of its stakeholders.
Within the Phu Bia Contract Area, lies the Phu Kham Operations which comprises a Heap Leach Gold operation and the large Phu Kham Copper-Gold Operation. Processing of copper-gold ore at Phu Kham commenced in March 2008 and will transform the Company into a significant producer of copper concentrate. The Phu Kham Heap Leach Operation (formerly called the Phu Bia Gold Mine) was brought into production in November 2005 and processes ore from the oxide gold cap overlying the much larger Phu Kham Copper-Gold Deposit.
The Company also has a number of exploration targets, the most advanced being the Ban Houayxai gold deposit, located 25 kilometres west of Phu Kham. Other exploration prospects of particular note include Tharkhek and Pha Nai.
Corporate Structure in Thailand
PanAust owns a 33.17% interest in the Thai-registered company, Puthep Company Limited ("Puthep"), through the Company's wholly owned subsidiary PNA (Puthep) Pty Limited. Padaeng Industry Public Company Limited ("Padaeng") owns the remaining interest in Puthep. Puthep has a concession agreement with the Government of Thailand. The concession covers the two deposits (the PUT1 and PUT2 deposits) that comprise the Puthep Copper Project. The PUT1 deposit is Thailand's largest known copper deposit and is located near the northern town of Loei.
PanAust can earn a 51% interest in Puthep by completing a feasibility study on the Puthep Copper Project in accordance with the Participation Agreement between the parties dated 21 August 2000 (as amended). The Company has further options to increase its interest in Puthep to an ultimate holding of 60% or 70%.
In November 2006, the Thai Government granted a land access permit and permission to commence a feasibility study at the PUT 1 deposit. The feasibility study will be conducted in two phases. The first phase, which commenced in March 2007, is designed to test the overall economics and potential of the Project and will allow accurate planning for the potential second phase. The second more detailed phase will be dependent on a positive outcome to the first phase and is currently scheduled to be completed by the end of 2008. PanAust is solely funding the feasibility study and the management of Puthep.
