PERTH (miningweekly.com) – Copper miner Sandfire Resources has struck a deal with fellow listed Auris Minerals to divest of its interest in the Sams Creek gold project, in New Zealand, in a deal valued at some A$23.2-million.

Under the terms of the agreement, Auris will acquire Sandfire’s wholly owned subsidiary Sams Creek Gold for an up-front consideration of 102.5-million new fully paid ordinary shares, priced at 8c each, for a total consideration of A$8.2-million.

Auris will further issue Sandfire with 32.15-million new options, exercisable at 8c each, and with an expiry date of November 30.

Further deferred considerations will also be made at the 24-month and 48-month milestones of A$2.5-million each in cash, along with production payments of some A$10-million, made in two tranches, some 18 months after commercial production and 36 months after commercial production.

At the close of the transaction, Sandfire will hold a 19.99% interest in Auris.

Sandfire MD and CEO Karl Simich on Thursday told shareholders that the transaction presented a positive outcome for both parties, providing Sandfire with an opportunity to leverage value from a noncore asset in partnership with a company with which it had a long-standing relationship.

Sandfire acquired the Sams Creek project through its 2019 acquisition of MOD Resources, which saw the company acquire the dominant position in the Kalahari copper belt, in Botswana.

The project hosts a Joint Ore Reserves Committee-compliant mineral resource of one-million ounces of gold, and is nearby the 2.5-million-ounce Reefton gold field.

Auris CEO Mike Hendriks said that the acquisition would be a transformational one for Auris, and would provide shareholders exposure to a gold project in a tier 1 mining jurisdiction.

“We have been actively seeking a strategic acquisition to complement our existing projects in the Bryah basin, which are largely funded under joint venture arrangements, and the opportunity to acquire Sams Creek surpassed our expectations.

“Auris has built a robust working relationship with Sandfire through our joint venture activities in the Bryah basin and we welcome Sandfire to our register as a cornerstone shareholder in the company,” Hendriks said.

The transaction is subject to the satisfaction of a number of conditions, including regulatory approvals.