The owner of the Sams Creek Gold Project, which sits atop what could be New Zealand's biggest undeveloped gold deposit, is selling its controlling stake in the project to a new company.
Gold, stock market.
Source: 1 NEWS
And that company is poised to list on the Australian stock exchange.
ASX-listed MOD Resources has sold its 80 per cent holding in Sams Creek Gold to Condamine Resources for $NZ4 million, but will retain up to a 15 per cent stake in Sams Creek once Condamine completes a planned initial public offering this year.
Melbourne-based OceanaGold Corp, which operates the Macraes gold mine in Otago, holds the remaining 20 per cent.
MOD has been looking to sell its holding in Sams Creek since January 2016, when it engaged investment bank PCF Capital Group to divest all or part of its holding.
In the last quarter of 2016, it was granted a four-year extension to the exploration permit covering the deposit.
Condamine, which plans to release its prospectus in August and list in the December quarter this year, describes itself as a "gold exploration and development company focused on opportunities in New Zealand".
"With a rapid pathway to commercialisation and potential bolt-on exploration opportunities, Condamine aims to become a significant gold producer in New Zealand driving long-term value for shareholders," it said.
"Condamine has an underground mining strategy to minimise environmental impact, to selectively mine, and deliver high-grade feed for processing."
MOD Resources shares last traded at 0.062 Australian cents on the ASX and have gained 66 per cent this year.
OceanaGold shares were recently at A$3.96 and have dropped 3 per cent this year.