Blina Minerals NL (ASX: BDI) acquires 11% stakes in New Zealand focused gold explorer Condamine Resources Limited. On Wednesday, the company announced that it has subscribed for 2,083,333 shares in Condamine that accounts to the investment of $250,000. However, the subscription has been made in the process of share placement under which shares were valued at a price of 12 cents per share with a 1.25 for one free attaching Option exercisable at $0.25 with a 3-year term.
Condamine Resources is an Australian gold exploration company that was established in May 2017. The company focuses on developing highly-prospective gold projects across New Zealand. Its four flagship projects include Big River, Alexander River, Reefton South, and Lyell Gold Project.
Veteran geologist and Director of Blina Mr. David Porter stated that the investment in Condamine underlines a suitable strategic opportunity for the company. It has further been explained that Condamine will utilize Blina’s investment towards working capital required in the preparation of drilling program scheduled to be started in the first half of 2019.
“Blina has reviewed several Condamine’s projects over the past 18 months, looking for the right combination of attributes and the company has concluded that Condamine’s strategy is well-aligned with Blina’s growth objective, representing an excellent investment opportunity at a time of record gold prices,” added Mr. Porter.
The management advised that Condamine has a strategy of developing its high-quality gold assets’ portfolio through exploration and acquisition activities. It targets to realize optimum value from projects by considering all transaction projects at an appropriate time.
Let’s take a look of Condamine’s four key projects:
Alexander River Project- Alexander river mine is a gold mine located in the West Coast Region, South Island, New Zealand. It is, in reality, a group of mines with exploration permit located 20km south of the 1.6Mtpa Globe-Progress plant. The mine holds 1,200m outcropping high-grade gold-quartz reef and a series of mineralized shoots or lodes. Further, the drilling approvals are reportedly due to be received by the first quarter of CY 2019.
Big River Project- Big River Gold Project is considered as one of the most significant historical mines which had produced circa 136,000 ounces of gold at an average recoverable grade of 34.1 g/t Au (Report 2013). Condamine has discovered orogenic gold in quartz veins on anticlinal structures of un-mined halo at Big River.
Reefton South Project- The Reefton South Gold Project contains two historical mines, the Morning Star and the Golden Point, situated northwest of the Globe-Progress plant. It overall covers buried Greenland Group rocks to the south of the historical Blackwater Mine and early Ordovician Greenland Group rocks to the west of the Globe-Progress Mine.
Lyell Project- Lyell Gold Project is the northern extension of the Reefton Goldfield, covering another segment of Greenland Group rock. In the Lyell Goldfield, quartz veins were identified from the initial discovery of rich alluvial ground, and several vein occurrences were traced over the field with the same styles of mineralization found at Reefton.
Blina Minerals shares are currently trading flat, (16 January 2019; 1:21 PM AEST). BDI last traded at $0.001 with a market capitalization of $4.36 million.
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