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4/4/2018 — Gold
Wait continues on Sams Creek sale
By Ross Louthean

It is now almost nine months since MOD Resources Ltd (ASX: MOD) announced it was divesting its 80% equity in the Sams Creek gold project to a proposed Australian IPO.

However, the market is still awaiting the float of Condamine Resources Ltd which is acquiring the project near Takaka that was originally a discovery by Rio Tinto exploration company CRA Exploration that was sold to Macraes Mining along with a package of Reefton goldfield properties.

Macraes Mining also launched open cut gold mining at Macraes in East Otago.

The Reefton properties went into GRD Macraes and then the current miner at Macraes OceanaGold Corporation, which still retains a 20% interest in Sams Creek.

The 2017 annual report for MOD Resources, which focuses mainly on its advanced exploration and development of copper-silver deposits in the Kalahari Copper Belt of Botswana, makes a brief mention of Sams Creek.

It details that Condamine was buying the Sams Creek equity for $A3.8 million with a prospectus now due in the first half of this year.

MOD shareholders would be given a priority offer for shares in Condamine, and MOD indicated that post the IPO the company could hold a stake of 15%.

The annual report also said the assignment was subject to conditions including transfer and assignment of OceanaGold’s 20% stake in Sams Creek on terms acceptable to Condamine.

However, to the close of trade on the Australian Securities Exchange website yesterday there was still no detailing of Condamine as an upcoming float.

More information may be provided by Condamine non-executive director Don Harper – who recently resigned as chief executive of Western Australian gold mine developer Kin Mining – when he presents at the Minerals Forum Conference in Queenstown at the end of May.

PDF File MOD annual report. (2.5 megabytes)
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The core farm near Takaka for the Sams Creek project.