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- Santana Minerals (SMI) has signed a binding sale and purchase agreement to acquire privately owned company Matakanui Gold (MGL)
- MGL owns a mineral exploration licence, now called the Bendigo-Ophir Gold Project, in Central Otago in New Zealand
- The project contains a Inferred Mineral Resource of approximately 252,000 ounces of gold (uncut) and has numerous drill-ready exploration targets
- Santana says the project is underexplored by modern exploration methods
- However, the deal is not complete until a number of conditions are met, such as shareholder approval to issue the Consideration Shares and a 1 for 70 share consolidation
- Santana will also need to raise a minimum of $7.5 million, which will be done so through the issue of 37.5 million shares at 20 cents each
- On market close, Santana is down 33.3 per cent and is trading for 0.3 cents per share
Santana Minerals (SMI) has signed a binding sale and purchase agreement to acquire Matakanui Gold (MGL).
MGL is a privately owned New Zealand company and holds a mineral exploration permit 60311, now called the Bendigo-Ophir Gold Project, in Central Otago in New Zealand.
Bendigo-Ophir covers 251 square kilometres in the Central Otago goldfields, 90 kilometres from Oceana Gold’s world-class Macraes gold mine, where previous production and mineral resource total in excess of eight million ounces of gold.
The project contains a Inferred Mineral Resource of approximately 252,000 ounces of gold (uncut) and has a significant exploration upside with numerous drill-ready exploration targets.
Santana says the project is underexplored by modern exploration methods.
To purchase all of the share capital in MGL, Santana will issue MGL Shareholders a total of 38,189,017 shares post consolidation (consideration) to be allocated in accordance with their pro-rata holding in MGL.
Completion of the aqusition remains subject to a number of conditions such as shareholder approval to issue the Consideration Shares and a 1 for 70 share consolidation.
Santana will also need to raise a minimum of $7.5 million, through the issue of 37.5 million shares at 20 cents per share. Funds from this capital raise will be used for exploration and evaluation at Bendigo-Ophir, progressing with it projects in South America and for general working capital.
“We are extremely excited to have acquired such a highly prospective gold project in this current environment. Its prime location within the Otago Goldfields and its many analogies to the nearby Macraes Gold Mine makes Bendigo-Ophir an outstanding exploration prospect,” CEO Shane Pike said.
“With several drill ready targets already identified, the company looks forward to promptly embarking on a drill campaign and delivering on the enormous potential of the project,” he added.
“In addition to the rapid advancement of Bendigo-Ophir the company plans to concurrently undertake a strategic review of its existing portfolio of exploration projects with an objective of maximising value for our shareholders,” he concluded.
Santana is down 33.3 per cent on market close and is trading for 0.3 cents per share.
