Taruga Minerals has taken a major step forward with a 12-month option to acquire two promising Papua New Guinea projects, backed by a $1.5 million capital raise to accelerate exploration efforts.
- 12-month option to acquire 100% of East Normanby and Kol Mountain projects in PNG
- Raised $1.5 million via placement led by Discovery Capital, directors to commit $600,000
- East Normanby hosts advanced gold system with extensive historical drilling
- Kol Mountain offers significant copper-gold porphyry potential
- New gold-copper prospects identified in Western Australia’s Gascoyne region
Strategic Expansion into Papua New Guinea
Taruga Minerals Limited (ASX, TAR) has marked the December 2025 quarter as transformational, securing a 12-month option to acquire two high-potential exploration projects in Papua New Guinea (PNG), the East Normanby Gold Project and the Kol Mountain Copper-Gold Project. This move represents a strategic entry into a prolific mineral region, offering exposure to both advanced gold systems and large-scale copper-gold porphyry targets.
The East Normanby Project, spanning 491 square kilometres across three tenements, includes the Weioko gold deposit; a historically drilled asset with 67 holes totalling nearly 5,800 metres. Historical results reveal substantial intervals of high-grade gold mineralisation, with some intercepts remaining open for expansion along strike and at depth. Complementing this is the Gwamogwamo prospect, where recent independent assays have validated robust gold-copper mineralisation over a 1.5-kilometre strike, reinforcing its status as a priority drill target.
Kol Mountain, Copper-Gold Potential in a Proven Belt
The Kol Mountain Project covers 123 square kilometres on East New Britain Island and hosts multiple targets including porphyry, skarn, and shear-hosted gold systems. Historical drilling comprising 37 holes and over 8,600 metres has returned encouraging copper intercepts, such as 222 metres at 0.38% copper from near surface. Gold assays from trenching also highlight high-grade zones, underscoring the project's multi-commodity potential within a well-established PNG metallogenic belt.
Funding and Structured Acquisition Approach
To underpin these growth initiatives, Taruga completed a $1.5 million placement at $0.01 per share, led by Discovery Capital, with directors committing an additional $600,000 subject to shareholder approval. This capital injection boosts the company’s pro-forma cash position to approximately $2.5 million, providing a solid financial foundation for advancing exploration during the option period.
The acquisition option is structured with staged performance payments linked to JORC-compliant resource milestones and includes a 1.5% net smelter return royalty per project. A minimum expenditure commitment of $150,000 per project during the option period ensures focused and disciplined capital deployment aligned with value creation.
Western Australia Portfolio Continues to Deliver
Beyond PNG, Taruga’s Western Australian assets continue to show promise. The recent identification of the Uaroo Ridge gold-copper prospect within the Northern Gascoyne Province highlights the underexplored nature of the region. Initial rock chip samples returned anomalous gold and copper grades, suggesting potential for further discoveries.
Additionally, the Thowagee South polymetallic target has been refined through geophysical surveys, with rock chip assays confirming significant lead and zinc mineralisation. These findings support ongoing 2D and 3D modelling efforts to prioritise drill targets and optimise future exploration programs.
Looking Ahead
Taruga plans to complete due diligence and regulatory processes in PNG during the March 2026 quarter, alongside community engagement and progressing tenure grants. The company aims to validate and georeference historical drilling data, reprocess geophysics, and commence targeted field programs to advance drill-ready targets at Weioko and Gwamogwamo.
Non-Executive Director Paul Cronin emphasised the significance of the quarter, noting that the combination of advanced project options, strong funding, and experienced local expertise positions Taruga well to unlock value for shareholders in 2026.
Bottom Line?
Taruga’s decisive PNG entry and strengthened balance sheet set the stage for a pivotal exploration year ahead.
Questions in the middle?
- Will Taruga convert the PNG option into full ownership within the 12-month period?
- How will upcoming drill results at Weioko and Gwamogwamo influence resource estimates?
- What is the timeline and likelihood of shareholder approval for director share commitments?