Santana Minerals’ subsidiary Matakanui Gold has signed a binding agreement to acquire Ardgour Station land integral to the Bendigo-Ophir gold project in New Zealand.
The NZ$25m ($15.2m) acquisition is subject to approval from the Overseas Investment Office and includes a non-refundable NZ$2m deposit.
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The transaction encompasses four land records, spanning 2,880 hectares and includes all irrigable lands, water rights and infrastructure.
The strategic move will eliminate a 1% gross production royalty on part of the RAS orebody and associated deposits.
The acquisition also secures the location for the project’s processing plant and most of its infrastructure.
Situated on New Zealand’s South Island, the Bendigo-Ophir gold project is an hour’s drive east of the international airport in Queenstown.
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By GlobalDataThe 251km² project is located within the Central Otago goldfields, 90km to the northwest of the globally renowned Macraes gold mine operated by OceanaGold.
This mine is notable for its significant gold yield, with past production and mineral resources collectively exceeding eight million ounces.
Santana CEO Damian Spring stated: “We are pleased to have completed a respectful and mutually beneficial transaction with the owners of the Ardgour Station. This secures our development rights for the majority of the Bendigo-Ophir Gold Project infrastructure and uncomplicates competing land uses when the project proceeds.
“We are also very pleased that the owners have joined themselves at the hip with us in sharing the tremendous benefits and upside the development can have for all its stakeholders by taking part of their consideration in share ownership of the parent company.”
A portion of the acquisition cost of NZ$5m will be settled in Santana Minerals shares, priced according to the 10-day volume-weighted average price before the agreement signing.
Existing rights under the current access agreement between Ardgour Station landowners and Matakanui Gold will remain if the settlement is unsuccessful or will be superseded upon completion.
