The Perth-based explorer which planned to take over New Zealand’s largest undeveloped gold project failed to make the grade.
The 80% owner of the Sams Creek gold project, MOD Resources Ltd (ASX: MOD) said in its June quarter report that the binding share sale agreement with Condamine Resources Ltd had lapsed.
In early July last year MOD struck an agreement with Condamine on Sams Creek that also took in its 100% owned adjacent permit.
Condamine was looking at an IPO on the Australian bourse but appeared to have failed to get the traction to meet the time frame.
MOD said following termination of this agreement, OceanaGold Corporation (TSX & ASX: OGC) will remain 20% owner of the discovery permit EP 40338.
The porphyry gold discovery near Takaka near the top of the South Island contains a resource of more than one million ounces of gold.
MOD said Sams Creek remains open at depth and along strike, supporting significant additional exploration potential.
The company said it was “exploring other opportunities to monetise the Sams Creek gold project.”
Sams Creek was originally a discovery by CRA Exploration, a subsidiary of Rio Tinto Ltd but when that mining giant left the New Zealand gold scene it sold its Reefton goldfield and Sams Creek projects to Macraes Mining Ltd, a forerunner of OceanaGold.