The company has reached an agreement to purchase about 800ha of Bendigo Station, equating to about 10% of the property.
The Australian and New Zealand stock exchange listed company also exercised an existing option to buy another 92 hectares of strategically located land for water supply infrastructure and pipelines related to the proposed mine development.
Bendigo owner John Perriam, famed for creating the Bendigo Station merino brand and immortalising Shrek the Sheep, said the sale had been a long, difficult process.
“The land sold is approximately only ten percent of Bendigo Station, but the predicted benefits for our regional economy estimated at over five billion dollars is something I didn’t feel I had the right to stand in the path of.’’
Santana chief executive Damian Spring said the purchase would advance both the project and benefits to Central Otago.
“This is a huge step forward in advancing the project and delivering the significant economic benefits and job opportunities it will bring to the region.
‘‘While detailed Access Agreements were already in place with both pastoralists, enabling exploration, mining, and ensuring their support for the proposed operations, a mutually beneficial and practical agreement has now been reached to formalise that intent.
“With gold prices at record highs, the economics of our project are already substantially stronger than those reflected in our pre-feasibility Study, and our exploration continues to deliver.
"We are excited that this gold boom has the potential to once again ignite prosperity across the region, much like the original gold rush of the 1860s from which the region still prospers, one that drove population growth and industrial development in Central Otago.”
In July the company acquired the adjoining Ardgour Station for $25 million.
The Bendigo Station land was purchased by the Santana’s wholly owned NZ subsidiary, Matakanui Gold Limited (MGL).
Both today’s purchases would be made from existing cash reserves, Mr Spring said.
Santana is listed on both the Australian and New Zealand stock exchanges and is 43% New Zealand owned.
The Overseas Investment Office (OIO) requires anyone intending to sell farm land to an overseas person to advertise the land for purchase by a New Zealander on the open market for a period of at least 30 working days before any transaction with an international buyer is entered into.
Bendigo Station has been advertised for sale in August and Ardgour Station was listed for sale after Santana’s announcement in July.
Details of the sale are;
- A freehold land package of 797 hectares (subject to survey) encompassing the proposed open pits, waste dump and related infrastructure areas at Rise and Shine, SREX, SREX East and Come-in-Time deposits.
- The total acquisition cost is NZ$50 million (A$44 million) to be paid in stages. This also includes the extinguishment of a 1.25% NSR production royalty over the first one million ounces of gold produced from the land.
- Settlement remains subject to the receipt of project consents anticipated in early 2026 under the Fast-track Approvals Act (FTA)
- A non-refundable deposit of NZ$5 million will be paid.
- Santana retains rights to extend settlement by 12 months if FTA consents and other pre-conditions (including a decision-to-mine) are not satisfied within 12 months of the agreement date (16 October 2026). A 5% p.a. interest rate will apply to outstanding funds during any extension period.
- All rights under the existing access agreement between Bendigo Station and MGL will remain in force for any land not settled, or if the transaction does not proceed.
- Both purchases are subject to Overseas Investment Office.
