Santana Minerals’ (ASX:SMI) subsidiary, Matakanui Gold, has agreed to acquire Ardgour Station land for its Bendigo-Ophir Gold Project in New Zealand. The acquisition encompasses four land titles covering 2,880 hectares, including irrigable land, water rights and infrastructure. Santana Minerals is a gold mining company focused on discoveries within its single gold deposit in New Zealand, the Bendigo-Ophir Project.
The staged acquisition is valued at NZ$25 million ($23.17 million) and is subject to Overseas Investment Office approval. The terms include a non-refundable deposit of NZ$2 million. An additional $5 million will be paid to the landowners in Santana Minerals shares, calculated at the 10-day volume weighted average price before the agreement was signed.
Santana Minerals CEO Damian Spring stated that the deal secures development rights for the majority of the Bendigo-Ophir Project infrastructure. This acquisition also simplifies competing land uses as the project advances. The Bendigo-Ophir Project, situated on New Zealand’s South Island, boasts a resource estimate of 2.46 million ounces of gold at 2.1 grams per tonne.
Spring added that the landowners are now invested in the company’s success through share ownership, allowing them to share in the benefits of the project. Santana Minerals currently has a market capitalisation of $386.65 million.
