The long-awaited IPO to give a new life to the Sams Creek gold project near Takaka at the top of the South Island now has a target of being lodged in the next quarter.
Condamine Resources Ltd is acquiring the project from operator MOD Resources Ltd (ASX: MOD) which essentially put the project on ice in the tough market conditions of two years ago to focus on its copper-gold projects in the Kalahari Copper Belt of Botswana.
While the market for new IPOs for gold and the suite of “battery” metals (lithium, graphite, cobalt and nickel) has been robust in the past six months on the Australian Securities Exchange (ASX) the Condamine float has had a relatively long gestation period.
Condamine is buying MOD’s 80% interest in Sams Creek for $A3.8 million ($NZ4.067 M) and has struck an arrangement with 20% owner OceanaGold Corporation (TSX & ASX: OGC).
The acquisition not only takes in the high-country Sams Creek deposit but also a lease owned 100% by MOD that is seen as a strike extension of the established orebody on which a few years ago drilling by MOD lifted the resource to above 1 million ounces of gold – making it the largest undeveloped gold deposit in New Zealand.
MOD’s March quarter report said it was anticipated the Condamine prospectus would be lodged in the June quarter and that MOD’s interest in the issued capital could see the company holding a 15% stake. It was anticipated that MOD shareholders will receive a priority offer for shares in the IPO.
Funds from the sale will be used by MOD to contribute to advancing exploration and mine development activity in Botswana.
Sams Creek was originally a discovery by CRA Exploration, a division of Rio Tinto in Australia and it was sold to Macraes Mining which was a forerunner of OceanaGold.