SAMS CREEK GOLD PROJECT (NEW ZEALAND; MOD 80%, OCEANAGOLD CORPORATION 20%)
On 3 July 2017, MOD Resources entered into a binding Share Sale Agreement (SSA) to divest its Sams Creek Gold Project to newly incorporated Condamine Resources Ltd (Condamine) for a total consideration of A$3.8 million.
Condamine intends to complete an IPO to list on the ASX with its prospectus expected for lodgement in the first half of 2018. MOD’s interest in Condamine's post IPO issued capital could be up to 15%.
Funds from the sale of MOD’s interest in Sams Creek will be used to contribute to expanding exploration and development activities in Botswana.
Sams Creek Gold Project is located 100km north of the Reefton gold field in the South Island of New Zealand. MOD, through subsidiary Sams Creek Gold Ltd, owns 80% of Sams Creek Joint Venture and OceanaGold Corporation, which is New Zealand’s largest gold producer, holds 20%.
Sams Creek is a substantial undeveloped gold project in New Zealand and includes a +1Moz porphyry hosted gold resource which remains completely open at depth and along strike, supporting significant additional exploration potential. It may have the potential to be developed as an underground mine and is located close to power, infrastructure and a sealed road linking it to Port Nelson.
The Project hosts a JORC (2012) compliant mineral resource of 20.5Mt @1.54 g/t Au at a 0.7 g/t Au cut-off grade. This includes an indicated resource of 10.1Mt @1.77g/t Au for 575koz. MOD’s resource consultants have also conducted an informal review of the project assuming a 2.0g/t Au cut-off grade.