A gold mining revival for the Reefton goldfield gained a new prop this week when it was revealed that Perth listed junior company Blina Minerals Ltd (ASX: BDI) has taken a strategic position in aspiring ASX float Condamine Resources Ltd.
Condamine has been looking to get into the NZ gold scene for more than two years, originally seeking to take over the Sams Creek gold project near Golden Bay from the joint venture of MOD Resources Ltd (ASX: MOD) and OceanaGold Corporation (TSX & ASX: OGC) but it failed to complete the contract.
It then secured historic mine workings in the Reefton field, including Big River, Alexander River and the large Reefton South block, but clearly was not gaining traction to raise $A4.75 million by the end of last year.
This week Blina disclosed it was going to subscribe for more than 2.083 million shares in Condamine through a placement at A12 cents per share with A1.25c for a free attaching option exercisable at $A0.25 on a three-year term.
This may be the leg-up Condamine was seeking, particularly with the ardour for new junior gold floats on the ASX being cool for the past six months and for Blina, which began life as an Australian diamond explorer, it may provide a new beginning with its share price languishing at A0.1¢, through the burden of having 4.364 billion shares and 905 M options on issue. A major capital reconstruction looks necessary to provide market traction.
Blina said it was investing a total of $A250,000 ($NZ263,900) in Condamine and director David Porter, a well-known Australian geologist, said the Condamine investment comes at the right time and “was a suitable strategic opportunity for the company.”
“Condamine has a strategy to build a portfolio of high-quality gold assets through exploration and acquisition and to realise value from projects by considering all potential transactions at an appropriate time,” Porter said.
Since Condamine disclosed to NZResources.com at the Diggers & Dealers Forum in Kalgoorlie in August last year, it has added to its portfolio the historic Lyell goldfield, north of Reefton.
NZResources data shows part of the Lyell field was explored about seven years ago by Australian company Auzex, later linked to Explorum Ltd (ASX: EXU) which discovered a gold deposit in Western Australia’s wheatbelt and appears to be in the process now of being taken over by regional gold miner Ramelius Resources Ltd (ASX: RMS).
Condamine's managing director Don Harper said in an email to NZResources this week that this transaction represented an important step forward in the company on its NZ gold tenements.
He said funds raised from the placement will be used for additional working capital in preparation for the commencement of drilling in the first half of 2019.