The Sams Creek Gold Project is located in the northwest of the South Island of New Zealand and comprises two exploration tenements
Sandfire Resources advises that it has reached agreement to sell its interest in the Sams Creek Gold Project in New Zealand to Auris Minerals.
The Sams Creek Gold Project, held by the Company’s wholly-owned subsidiary, Sams Creek Gold Ltd (SCGL), is located in the northwest of the South Island of New Zealand and comprises two exploration tenements, EP 40 338 (subject to joint venture with OceanaGold Corporation (20%) and SCGL (80%)) and EP 54 454 (SCGL 100%).
Sandfire inherited the Sams Creek Gold Project through its acquisition of MOD Resources Ltd in October 2019, which saw it acquire a dominant ground position in the Kalahari Copper Belt in Botswana and a strategic focus on the T3 Copper-Silver Project development, subsequent nearmine A4 Dome discovery and other emerging exploration opportunities.
The Sams Creek Gold Project is non-core for Sandfire in terms of scale and development as Sandfire focusses on development of its advanced base metal development projects in Botswana and in Montana, USA.
Under the terms of the sale agreement, Auris will acquire 100% of Sandfire’s wholly-owned subsidiary, Sams Creek Gold Ltd (SCGL).
The estimated up to $23.2 million transaction value and structure fits well with the Company’s Sandfire Ventures strategy, whereby Sandfire holds strategic shareholdings in companies that offer exposure to high-quality exploration and development assets around the world.
Post completion of the transaction, Sandfire will hold a 19.9% cornerstone shareholding in Auris, allowing it to retain leveraged exposure to the future upside arising from the exploration and potential development of the Sams Creek Gold Project and other assets.
Sandfire has an existing relationship with Auris through its Mork Well and Doolgunna Joint Venture exploration projects in the Bryah Basin of Western Australia, where it is managing exploration activities targeting new VMS discoveries in close proximity to the DeGrussa Copper-Gold Mine.
The acquisition remains subject to the completion of due diligence within 30 days of the executed binding term sheet, Auris shareholder approval of the issue of shares to Sandfire as consideration for the acquisition, and New Zealand regulatory consents to the change in control of SCGL.
Commenting on the transaction, Sandfire’s Managing Director and CEO, Karl Simich, said: “This represents a positive outcome for both parties. For Sandfire, it provides an opportunity to leverage value from a non-core asset in partnership with a company with whom we already have a longstanding relationship in the Doolgunna region.
“We look forward to concluding this transaction and to continuing to work closely with Auris, both as an ongoing joint venture partner in the Bryah Basin and as a strategic cornerstone investor.”
Source: Company Press Release