The company planning to take up the Sams Creek gold project near Takaka at the top of New Zealand’s South Island has now set back its IPO plan until early in the new year.
Condamine Resources Ltd is to acquire the 80% interest held by MOD Resources Ltd (ASX: MOD) for $A3.8 million ($NZ4.25 M).
MOD had advanced the resource at Sams Creek a few years ago and earned an 80% stake from OceanaGold Corporation (TSX & ASX: OGC) but when capital was becoming tight at the end of the mining boom, MOD placed Sams Creek on ice and focused on exploration and development of its Kalahari Copper belt copper-silver discoveries in Botswana.
Exploration by MOD had lifted the Sams Creek resource to more than 1 million ounces, making it the largest undeveloped gold deposit in the country.
MOD’s September quarter report said Condamine intends to complete an IPO to list on the ASX with their prospectus expected for lodgement in early 2018. This would avoid the holiday period in the markets.
MOD’s managing director Julian Hanna said MOD’s interest in Condamine's post IPO issued capital could be up to 15%.
He said it was anticipated MOD shareholders will receive a priority offer for shares in Condamine. The proposal was subject to a number of conditions including transfer and assignment of OceanaGold 20% interest in the project on terms acceptable to Condamine and quotation of Condamine shares on the ASX.
MOD said during the quarter, several key conditions precedent were met. The Barrons Flat licence EP 54454 was extended for another five years until September 25, 2022 and a new deed of access with the Department of Conservation in New Zealand was “successfully entered into for the Sams Creek licence EP 40338.
Condamine has also notified MOD that due diligence investigations for acquisition and associated SSA have been satisfied.
Hanna said funds from the sale will be used by MOD to contribute to expanding exploration and development activities in Botswana.
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