UVRE Limited is set to acquire New Zealand gold explorer Otagold Limited, issuing 75 million shares as consideration and raising $4 million to fund exploration. The move significantly broadens UVRE’s exposure to high-potential gold projects in a tier 1 mining jurisdiction.
- Acquisition of 100% of Otagold Limited via share sale agreement
- Issuance of 75 million shares at $0.08 per share as consideration
- Concurrent $4 million equity raise led by Bell Potter Securities
- Portfolio includes five key gold projects across New Zealand’s North and South Islands
- Experienced board expansion with mining veteran Norman Seckold joining
Strategic Acquisition in a Tier 1 Mining Jurisdiction
UVRE Limited (ASX: UVA) has announced a transformative acquisition of Otagold Limited, a New Zealand-focused gold exploration company. The deal, structured as a share sale agreement, will see UVRE issue 75 million shares at $0.08 each to acquire full ownership of Otagold’s parent, Minerals Exploration Limited (MEL). This move significantly diversifies UVRE’s portfolio, adding highly prospective gold exploration permits across New Zealand’s North and South Islands.
The acquisition is complemented by a $4 million equity raise at the same share price, led by Bell Potter Securities, aimed at providing working capital to advance exploration activities. Directors and management have committed approximately $685,000 to the raise, signaling strong internal confidence in the transaction and the projects’ potential.
Robust Project Portfolio with Historical and Drill-Ready Targets
Otagold’s portfolio includes five key projects: Waitekauri, Lottin Point, Roaring Meg, Oturehua, and Invincible. These projects cover over 332 square kilometers of highly prospective ground in a jurisdiction known for its mining-friendly regulatory environment and ready infrastructure. Notably, the Waitekauri project lies adjacent to Oceana Gold’s Waihi mine, a prolific 10 million ounce gold producer, and features multiple prospects with historical production and high-grade drill targets.
The Waitekauri project, for example, hosts the Jubilee prospect, where historical drilling has revealed bonanza-grade gold assays, including a remarkable 0.3 meters at 521 grams per tonne gold. Exploration plans include an eight-hole drilling program targeting these high-grade veins, with permitting and landowner agreements already underway.
Experienced Leadership and Clear Forward Plan
The acquisition brings seasoned mining executive Norman Seckold onto UVRE’s board. With over 40 years of experience managing natural resource companies in Australia and internationally, Seckold’s involvement adds significant expertise, especially given his leadership roles in other ASX-listed resource companies.
UVRE plans to commence fieldwork by mid-2025, focusing initially on permitting, sampling, mapping, and drilling across the newly acquired projects. The company also intends to conduct a strategic review of its existing assets to maximise shareholder value. Post-raise, UVRE will hold approximately $6.2 million in cash, positioning it well to fund these exploration activities.
Regulatory and Shareholder Approvals Pending
The transaction and equity raise remain subject to several conditions, including shareholder approval at an extraordinary general meeting expected in June 2025, and regulatory consents such as New Zealand Ministerial approval under the Crown Minerals Act. Completion hinges on satisfactory due diligence and the resolution of procedural matters related to prior acquisitions within MEL and Otagold.
While the acquisition offers promising exposure to gold in a stable jurisdiction, investors should note that exploration results remain prospective and subject to the usual risks inherent in mineral exploration.
Bottom Line?
UVRE’s acquisition and capital raise mark a pivotal step towards unlocking New Zealand’s gold potential, with exploration success set to define its next growth phase.
Questions in the middle?
- How will UVRE prioritise exploration across its diverse New Zealand project portfolio?
- What impact will the equity raise and share issuance have on existing shareholders’ dilution?
- How swiftly will regulatory approvals, particularly New Zealand Ministerial consent, be secured to enable project advancement?