Vancouver-headquartered OceanaGold on Wednesday announced the sale of its interest in the Blackwater project, in New Zealand, to Tasman Mining, a subsidiary of Federation Mining.
This comes as Tasman exercised its exclusive option on Blackwater, which has been held under a project deed since July 2018.
Under the terms of the agreement, OceanaGold is to receive $30-million in cash upon closing of the transaction. The deal is expected to close in 2024.
The deposit at Blackwater was continuously mined from 1908 to 1951, producing about 700 000 oz at a recovered grade of about 16 g/t.
A preliminary economic assessment completed by OceanaGold in 2014 concluded that the project would be environmentally, technically and economically viable and produce 570 000 oz over an initial ten-year mine life.