Santana Minerals’ (ASX:SMI) wholly owned subsidiary Matakanui Gold has entered into a binding agreement to acquire outright Ardgour Station land which has competing land uses over part of the Bendigo-Ophir Gold Project in New Zealand.
The acquisition includes four land records of title covering 2,880 hectares, including all irrigable land, water rights and infrastructure.
Under the proposed terms, the staged acquisition valued at NZ$25 million ($23.17 million), will be subject to Overseas Investment Office approval with a non-refundable deposit of NZ$2 million to be paid to the owners of Ardgour Station.
Santana Minerals, which has a market capitalisation of $386.65 million, says $5 million worth of shares will also be paid to the land owners, calculated at the 10-day volume weighted average price prior to the signing of the agreement.
CEO Damian Spring says this deal secures the development rights for the majority of the Bendigo-Ophr Project infrastructure and uncomplicated 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,” Spring says.
The Bendigo-Ophir Project, located on the South Island of New Zealand, contains a resource estimate of 2.46 million ounces of gold @ 2.1 grams per tonne.
Santana Minerals is a gold mining company focused on discoveries within its single gold deposit in New Zealand.
Write to Aaliyah Rogan at Mining.com.au
Images: Santana Minerals
