Highlands Pacific Limited (HIG) is an ASX-listed mineral exploration company with interests in two projects (Ramu and Frieda River projects) that have recognised JORC resources and exploration licences at a third site (Star Mountains). The company is incorporated in PNG and is also listed on the POMSoX and all assets are located in Papua New Guinea (PNG). We maintain our valuation as per our last update note.

Much needed capital raised, much more needed. PWN raised $1.79M in a recent Renouncable Entitlement Issue. The offer to shareholders was for one share for every six shares held at $0.22 per share plus one free attaching option excersiable at $0.30 per option on or before 15 March 2015

Capital raising to support buying spree. During the March 2013 quarter, the Fund purchased 51 freestanding properties for a total of US$32.5M and received conditional acceptances on 59 properties for an expected cost of US$58.6M. This takes the total freestanding properties purchased since inception to 383 for a cost of US$140.3M with a further 92 conditional acceptances received for an expected cost of US$64.4M.

The southern section of the Maiden Inferred JORC Resource of 46Mt @ 17.2% P2O5 at the Kanzi Project has been upgraded to an Indicated Resource Estimate of 58.5Mt @ 14.2% P2O5. This equates to a 27% increase in tonnage and a 5% increase in equivalent P2O5.

In December 2012, Xstrata Copper (Xstrata) delivered a FS and an extended study for the Frieda River Project. The studies are currently being reviewed by HIG to ensure they comply with the obligations under the JV agreement. The Project has an estimated capital expenditure of US$5-5.6 billion.