OceanaGold Corp. has agreed to sell its interest in the Snowy River Mine to Tasman Mining Ltd., a subsidiary of Federation Mining Inc., for $30 million. The transaction is subject to a number of conditions including regulatory approval and is expected to close in 2024. Located on the South Island of New Zealand, the Snowy River mine was formerly known as the Blackwater project.
In November, Federation sold its interest in OreCorp Ltd for $26 million, which has provided funding for its current development phase through the first half of 2024. The company is currently pursuing a wide variety of additional funding opportunities to assist in the purchase of the asset and the construction of a processing plant.
“We are excited to take this step by exercising of the project deed to purchase the asset,” Federation Managing Director Mark Le Messurier said. “This is a project that will bring many benefits to our company, the local community and New Zealand’s West Coast.”
Underground drilling was completed in 2023 and the company said a mineral resource will be estimated in Q1 2024, with a Pre-Feasibility Study (PFS), being managed by a leading consultant, set to be completed by April 2024.
Snowy River is fully permitted for all construction and production activities, and currently employs 60 people.
