Tempest Minerals (ASX: TEM) will take ownership of an advanced gold portfolio in New Zealand when it acquires Australian-based private explorer Zealandia Resources in a $2 million scrip deal.
The epithermal projects — namely Puriri, Hossack, Ohakuri West and Matahana — comprise multiple drill-ready targets in known gold-bearing areas across 145 square kilometres of the North Island.
They are strategically located within the Taupo volcanic zone and the Hauraki goldfields which have historical gold production of more than 15 million ounces and come with an extensive geophysical dataset from gravity and magnetics surveys, surface geochemistry, rock chip sampling and past drillholes.
Strategic value
Tempest managing director Don Smith said the Zealandia portfolio would complement the company’s Australian projects.
“This acquisition positions us to leverage the strategic value of the prospects in both countries for the benefit of shareholders,” he said.
“We are certainly excited by the opportunity to acquire drill-ready targets in a proven gold-bearing region backed by a round of fieldwork by our consulting team which has shown geological analogies to other large gold deposits in the region.”
Zealandia executive director Shaun Ramsden said the acquisition represented a “strong validation” of the quality of the New Zealand projects.
Deal consideration
Tempest has agreed to pay Zealandia shareholders a $2m consideration via the issue of Tempest shares at the 10-day volume weighted average price at the time of payment.
It will also issue $2m in performance shares based on pre-determined drilling and maiden resource milestones being met within five years of the acquisition.
Zealandia will be entitled to nominate one non-executive director to sit on the Tempest board.
The acquisition will be subject to the completion of due diligence; finalisation and execution of formal transaction documentation; progression of regulatory requirements; and further fieldwork across the New Zealand landholding.
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