Oceana Gold has bought the gold exploration assets of Toronto-listed Antipodes Gold in the central North Island, with the latter still headed for its reverse takeover of Chatham Rock Phosphate.
Antipodes, formerly Glass Earth Gold which explored for gold mainly around Otago, yesterday announced completion of the sale to Oceana, which separately last year bought the neighbouring Newmont Waihi Gold mine.
Antipodes chairman Adrian Fleming, who did not reveal the sale price, said the company could now focus on the reverse takeover of Chatham Rock.
Because of (Toronto) TSX Venture Exchange regulations, Antipodes, with Chatham as its subsidiary, must have sufficient working capital to meet administration and budgeted operating costs for the 12 months after the reverse takeover.
To achieve that, Chatham has boosted its cash position by entering into a conditional subscription agreement for up to $NZ600,000 of new shares from a private investor, Mr Fleming said in a statement.
‘‘The divestment of the [central North Island] gold assets provided an opportunity for shareholders to invest in a company with exciting prospects in the marine and terrestrial phosphate industry,'' he said.
Chatham Rock holds a mining permit for a significant phosphate deposit in the Chatham Rise seabed, about 400km east of Christchurch.
Chatham's initial marine consent application was declined in February 2015 by the Environmental Protection Authority but Chatham is planning to submit another application, subject to improvements to the consenting process.
Chatham intends to raise further funds of up to $NZ900,000, Mr Fleming said.
He warned the reverse takeover was subject to a number of conditions, including final acceptance by the TSX Venture Exchange, so could give no assurance the transaction would be completed as proposed.
