Santana Minerals Secures $31.2M to Advance Bendigo Ophir Gold Project Toward Development

Santana Minerals Ltd (ASX: SMI) has received firm commitments to raise A$31.2 million at A$1.15 per share.

The raising is via a private placement to institutional, professional and sophisticated investors.

Santana will also open a share purchase plan to raise up to another A$4 million.

Funds raised will be applied to rapidly advance the Bendigo Ophir Gold Project.

Bendigo-Ophir

The project covers 251 square kilometres in the Central Otago goldfields of New Zealand.

This is just 90 kilometres northwest of Oceana Gold’s world-class Macraes gold mine where previous production and resources total in excess of 8 million gold ounces.

Bendigo-Ophir resources occur in four deposits that extend in a northerly direction, for a total of 2.45 million ounces at 2.0g/t gold.

Scoping Study key outcomes

The study outlined an average of 110,000 gold ounces produced annually, over a 10-year mine life.

The pre-production and working capital requirement are NZ$256 million, with a total production cost of NZ$1,392 an ounce.

Based on the current gold spot price of US$2,340 an ounce, this equates to around NZ$3,900 an ounce.

Revenue is estimated at NZ$4.4 billion, for a net profit after tax of NZ$2 billion.

The estimated time to permitting is 6 months, with construction 12 months.

After tax internal rate of return comes in at 75%, with a simple payback of one year.

Opportunities

Peter Cook, chairman, commented:

“The funds raised from the placement ensures we have the balance sheet to rapidly advance the Bendigo Ophir Gold Project towards development whilst having the flexibility to continue to pursue the numerous growth opportunities that exist within the project through aggressive extensional and exploration drilling.”

 

 

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