Kibush Capital Corp entered into a memorandum of understanding to acquire New Guinea Gold Limited from New Guinea Gold Corp. for $5.3 million.

Kibush Capital Corp (OTCPK:DLCR) (KCC) entered into a memorandum of understanding to acquire New Guinea Gold Limited from New Guinea Gold Corp. (TSXV:NGG) for $5.3 million on May 1, 2014. Kibush Capital Corp will assume responsibility for certain liabilities held by New Guinea Gold Limited as at April 30, 2014 and will be granted management rights to the Mt Sinivit goldmine, operated in Papua New Guinea by New Guinea Gold Limited, as at May 15, 2014. KCC will assume responsibilities for all creditors, loans and legal obligations of New Guinea Gold Limited from that date. The deal has been unanimously approved by the Board of Directors of New Guinea Gold Corp. and it is subject to shareholders of New Guinea Gold Corp., regulatory approval and customary conditions.

As of June 5, 2014, New Guinea said that it has received no communication by Kibush, for the transaction being terminated. It has arranged for an Extraordinary General Meeting of its shareholders to be held on July 14, 2014.