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 2,636 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. Tenure of the MEPA is 30 years which is refreshed with each new mine development.
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. 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. Processing of copper-gold ore at Phu Kham commenced in March 2008 and transformed the Company into a leading producer of copper concentrate in Southeast Asia.
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 the Phonsavan Copper Project and Ban Phoxai prospect.
Corporate Structure in Thailand
PanAust owns a 33.17% interest (and the right to a 49% 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 close to infrastructure and near the northern town of Loei.
PanAust will 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 between 60% and 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 is scheduled to be largely completed during 2009.
