Santana Acquires 889 Hectares and Cuts Royalties to Boost Bendigo Project
Santana Minerals has taken a major step forward by acquiring freehold ownership of critical lands and extinguishing royalties at its Bendigo-Ophir Gold Project, enhancing project economics amid a strong gold market.
- Acquisition of 797 hectares of mining land and 92 hectares for water infrastructure
- NZ$54.75 million total purchase price paid in stages
- Extinguishment of 1.25% and 1% net smelter return royalties
- Settlement subject to regulatory approvals and project consents
- Deal improves project economics and supports future mine development
Strategic Land Acquisition Advances Bendigo Project
Santana Minerals Limited has announced a significant milestone in its Bendigo-Ophir Gold Project by securing freehold ownership of key lands essential for mining operations and infrastructure. The company’s wholly owned New Zealand subsidiary, Matakanui Gold Limited, will acquire approximately 797 hectares encompassing the proposed open pits, waste dumps, and infrastructure areas, along with an additional 92 hectares designated for water supply and pipeline infrastructure.
This acquisition, valued at NZ$54.75 million (approximately A$48.2 million), marks the culmination of Santana’s long-held strategy to own the land directly impacted by its planned mining activities. The deal also includes extinguishing a 1.25% net smelter return royalty on the first one million ounces of gold produced from the Bendigo lands and a 1% royalty on the adjoining Ardgour Station lands, which were acquired earlier this year.
Economic and Operational Implications
By eliminating these royalties, Santana materially enhances the project’s economics, reducing ongoing operating costs and improving returns for shareholders. CEO Damian Spring highlighted the timing as particularly advantageous given the current record-high gold prices, which bolster the project’s financial outlook beyond previous feasibility studies.
Settlement of the transaction is contingent upon receiving project consents expected under New Zealand’s Fast-track Approvals Act in early 2026, as well as approval from the New Zealand Overseas Investment Office. Santana has paid a non-refundable deposit of NZ$6 million and retains the option to extend settlement by up to 12 months if necessary, with interest accruing on outstanding amounts during any extension.
Community and Regional Impact
Beyond the financial benefits, Santana emphasizes a collaborative relationship with the neighboring pastoralists of Bendigo Station, whose farming enterprise has operated on the land for over 125 years. The company aims to balance mining development with ongoing agricultural activities, fostering regional prosperity reminiscent of the historic gold rush era that shaped Central Otago.
With the land acquisition now securing all areas directly affected by mining operations, Santana is well-positioned to advance project development, underpinning future job creation and economic growth in the region.
Bottom Line?
Santana’s land and royalty acquisitions set the stage for accelerated project development and improved returns, but regulatory approvals remain the next critical hurdle.
Questions in the middle?
- Will regulatory and project consents be granted on schedule to enable settlement?
- How will the extinguishment of royalties affect Santana’s long-term cash flow and valuation?
- What are the potential impacts on local stakeholders and the environment as mining progresses?
