01/10/2020 - 15:41

Sandfire, Auris in $23m gold deal

01/10/2020 - 15:41

Bookmark

Save articles for future reference.

Sandfire Resources is selling its gold project in New Zealand to fellow Perth-based explorer Auris Minerals, in a cash and scrip deal worth $23.2 million.

Sandfire, Auris in $23m gold deal
Sandfire Resources is selling its Sams Creek gold project to Auris Minerals for $23.2 million. Photo: Shane McLendon

Sandfire Resources is selling its gold project in New Zealand to fellow Perth-based explorer Auris Minerals, in a cash and scrip deal worth $23.2 million.

Auris will buy Sandfire’s Sams Creek asset, which includes two exploration tenements in NZ’s South Island and a confirmed 1 million ounce resource.

Sandfire inherited the project along with a copper-silver project in Botswana after completing its acquisition of MOD Resources in October last year. The deal was worth $167 million.

Sandfire, which is also developing base metal projects in the US, said Sams Creek was a non-core asset for the company.

Managing director Karl Simich said the sale to Auris was a positive outcome for both companies.

“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 long-standing relationship in the Doolgunna region,” he said.

Sandfire and Auris operate the Mork Well and Doolgunna copper joint ventures, in WA’s Bryah Basin.

Auris will issue 102.5 million shares (worth $8.2 million) to Sandfire to acquire Sams Creek, and make total cash payments of $15 million. Sandfire will become a 19.9 per cent shareholder in Auris.

The company has also been issued about 32 million options priced at 8 cents each, with an expiry of November 30.

The deal is subject to a number of conditions, including Auris gaining shareholder approval.

Auris chief operating officer Michael Hendriks said the company had sought a strategic acquisition to complement its existing projects in WA.

“This is a transformational acquisition for Auris, which once complete, will provide shareholders with exposure to a million-ounce gold project in a tier-1 mining jurisdiction,” he said.

Auris said Sams Creek was one of the largest undeveloped projects in NZ.

The company will complete an exploration and works program upon completion of the transaction.

Shares in Auris closed down 8.7 per cent to trade at 10 cents, while Sandfire shares closed up 0.7 per cent to trade at $4.11.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options