Sandfire Resources has raised its stake in Auris Minerals to nearly 20 per cent, as part of its move to sell a gold project in New Zealand.
Sandfire, which has copper operations in Western Australia, recently said its Sams Creek gold project was a non-core asset of the company.
It inherited Sams Creek along with a copper-silver project in Botswana via its acquisition of MOD Resources in October last year.
Sandfire has exercised all of its Auris listed options – about 32 million exercisable at 8 cents each – for proceeds of about $2.6 million.
Sandfire says the deal, which brings its stake in Auris to 19.9 per cent, allows the company to retain exposure to the 1 million ounce project.
The remaining options (about 129 million) is fully underwritten by Lazarus Corporate Finance.
Auris says it plans to raise a further $10.3 million.
The company is paying up to $23.2 million for an 80 per cent stake in Sams Creek, which Auris says is one of New Zealand's largest undeveloped gold projects.
It entered into a purchase agreement with Sandfire last month.
Auris also has a farm-in deal with Sandfire for tenements in Western Australia’s Bryah Basin – the Mork Well and Doolgunna joint venture.