30-Sep-2020:  Acquisition Of Million Ounce Sams Creek Gold Project

Auris Minerals (AUR) emerged today from a self-imposed one week trading suspension with the news that they've agreed to purchase the majority share of the "One Million Ounce Sams Creek Gold Project" in NZ from Sandfire Resources (SFR).  I don't normally follow AUR, but I do hold SFR shares.  This project came with MOD Resources when SFR acquired MOD - to get hold of their Tshukudu project and dominant 11,700 square kilometre landholding across the underexplored Kalahari Copper Belt in Botswana - and the Sams Creek Gold Project (in NZ) is considered non-core by SFR - who are a copper producer who also produce gold as a byproduct of copper production, but don't appear to be interested in developing a standalone gold project themselves.

TRANSFORMATIONAL ACQUISITION OF MILLION OUNCE SAMS CREEK GOLD PROJECT IN NEW ZEALAND SAMS CREEK GOLD

PROJECT HIGHLIGHTS

• Binding agreement to acquire Sandfire Resources Limited’s (ASX: SFR) interest in the 1Moz Sams Creek Gold Project - one of the largest undeveloped gold projects in NZ:
  • The Sams Creek Gold Project, held by Sandfire’s wholly-owned subsidiary, Sams Creek Gold Ltd (SCGL), is located in the northwest of the South Island of New Zealand and comprises two exploration permits, EP 40 338 (currently held joint venture with OceanaGold Corporation (ASX: OGC) (20%) and SCGL (80%)) and EP 54 454 (SCGL 100%).
  • Hosts a JORC (2012) Mineral Resource of 1Moz gold @ 1.54g/t Au (0.7 g/t gold cut off) including a higher grade zone of 588koz gold at 2.43g/t Au (1.5 g/t cut off) (announced by MOD Resources Limited 9 October 2013) - nearby to the 2.5Moz Reefton Gold Field at the northern end of South Island
  • Review of the Resource using a higher-grade cut-off (2.0g/t Au) supports potential for extensive higher-grade gold mineralisation within the deposit
  • Wide porphyry dyke hosted gold deposit with potential to host multi-million-ounce gold deposit – extends >7km on the permits
  • Excellent exploration potential with current resource open along strike and at depth – multiple drill-ready targets identified
  • Historical drilling highlights include 19.6m @ 6.0 g/t Au and 9.1m @ 8.5 g/t Au (announced by MOD Resources Limited 16 May 2013 and 17July 2013)
  • Close to critical infrastructure including roads, town and hydro power

ACQUISITION OVERVIEW

• Scrip-based acquisition terms include:
  • Acquisition of 100% of Sandfire’s wholly owned subsidiary Sams Creek Gold Limited (“SCGL”), subject to shareholder and regulatory approvals
  • Upfront consideration to Sandfire of 102,500,000 new fully paid, freely tradeable ordinary AUR shares at $0.08 for total deemed consideration of $8,200,000
  • Auris will issue to Sandfire 32,150,000 new ASX: AUROC options exercisable at $0.08 and with an expiry of 30 November 2020
  • Deferred consideration milestones at 24 months and 48 months plus production payments as outlined below
  • Sandfire will acquire a 19.99% cornerstone shareholding in Auris

CORPORATE, CAPITAL RAISING AND NEAR-TERM STRATEGY

• Upon completion of the transaction, an aggressive exploration and works program is planned to quickly advance the project towards a preliminary scoping study
• Lazarus Corporate Finance Pty Ltd to underwrite the exercise of the pro-forma 160.8m AUROC Options (exercisable at $0.08, expire on 30 November 2020) to raise $12.9m. $2M sub-underwriting agreement executed with entity related to Auris Director Mr Rob Martin, subject to shareholder approval
• Funds will be used on additional drilling at Sams Creek, IP survey and Resource extension drilling at AUR’s Forrest copper deposits

--- click on link above for the full announcement, complete with charts and maps ---

[I hold SFR, but not AUR.]