Oceana Gold has added to its growing stable of overseas mine developments, taking a 19.9% stake in Nevada-based NuLegacy Gold's development gold mine for $C6.67 million ($NZ7.48 million).
During the past two years, Oceana has gained 100% ownership in an El Salvadorean development mine, El Dorado, purchased Newmont's Martha production mine in the Waihi in the central North Island and has taken over and begun mine construction in Haile, in South Carolina in the United States.
Oceana shares were up 4.6% after the announcement, at $4.32.
Oceana chief executive Mick Wilkes yesterday said the NuLegacy investment was "closely aligned'' with Oceana's strategy to seek exposure to quality gold projects.
"The Iceberg project sits within the prolific Cortez gold trend in Nevada and we look forward to working with NuLegacy to advance the project,'' he said.
NuLegacy has stated its objectives this year are to finish exploration programme plans, start its drilling programme and by late August have a maiden resource calculation prepared for the prospect Iceberg.
NuLegacy said its Iceberg gold deposit was adjacent to Goldrush, one of three Barrick Gold-owned "multimillion-ounce'' deposits, describing Goldrush as "the most significant greenfield discovery by a major gold producer in the past five years''.
NuLegacy is working from a compilation of 149 historic and 34 NuLegacy drill holes in and around the Iceberg deposit.
NuLegacy's chairman Albert Matter said the Oceana commitment provided the company with the "funds and additional expertise'' to rapidly expand the Iceberg deposit, with this year's exploration to start late April or early May.
Oceana purchased 47.66 million NuLegacy shares in the transaction, at C14c each, and has an option to purchase an additional up to 9.3 million more shares, subject to other shareholders Barrick Gold or Waterton Precious Metals Fund II Cayman LP exercising their participation rights.
