- Auris Minerals (AUR) has signed a deal with Sandfire Resources to wholly acquire its stake in the Sams Creek Gold Project in New Zealand
- As consideration, Auris will issue an initial 102.5 million fully paid ordinary shares to Sandfire at a deemed price of eight cents each
- A further 32.150,000 Auris options will be issued, exercisable at a price of eight cents until November 30, 2020
- The project is considered one of the largest undeveloped gold assets in the country, with a mineral resource estimate of one million ounces of gold
- Auris Minerals (AUR) were suspended on September 23 and last traded at a price of 12 cents per share
Auris Minerals (AUR) has signed a deal with Sandfire Resources to wholly acquire its stake in the Sams Creek Gold Project in New Zealand.
Located at the northern end of the South Island, roughly 20 kilometres south of Takaka, the project is currently held under Sandfire’s 100 per cent owned subsidiary, Sams Creek Gold Limited.
Covering a total of approximately 46.5 square kilometres, it consists of two exploration permits: EP 40 338, 20 per cent of which is owned by OceanaGold under a joint venture partnership, and EP 54 454.
According to an announcement dated October 2013, the Sams Creek Project hosts a mineral resource of one million ounces of gold at a grade of 1.54 grams per tonne, as well as a higher-grade zone of 588,000 ounces at 2.43 grams per tonne.
As consideration for the acquisition, Auris will issue a total of 102,500,000 fully paid ordinary shares to Sandfire at a deemed price of $0.08 each, representing a total of $8.2 million, or roughly 20 per cent of Auris’s outstanding capital.
A further 32,150,000 options will be issued upon signing of the deal, exercisable at a price of $0.08 until November 30, 2020.
A number of deferred payments will also be made, including $2.5 million in either cash or shares on the second and fourth anniversaries of the acquisition, along with $5 million payable after both 18 and 36 months of post-commercial production.
Mike Hendriks, Chief Operating Officer of Auris Minerals, said it is a transformational acquisition for the company.
“We have been actively seeking a strategic acquisition to complement our existing projects in the Bryah Basin, which are largely funded under joint venture arrangements, and the opportunity to acquire Sams Creek surpassed our expectations.
“Auris has built a robust working relationship with Sandfire through our joint venture activities in the Bryah Basin and we welcome Sandfire to our register as a cornerstone holder in the company and we look forward to further strengthening our partnership,” he added.
Shares in Auris Minerals (AUR) were suspended on September 23 and last traded at a price of $0.12 per share.