Toronto-listed OceanaGold has completed the previously announced sale of its interest in the Blackwater project, in New Zealand, following the receipt of all required regulatory approvals.
As consideration for the sale, OceanaGold received $30-million in cash and expects to record an aftertax accounting gain of about $10-million in the second quarter.
OceanaGold sold its interest in the Blackwater project to Tasman Mining, a subsidiary of Federation Mining.
The deposit at Blackwater was continuously mined from 1908 to 1951, producing about 700 000 oz at a recovered grade of about 16 g/t.
A preliminary economic assessment completed by OceanaGold in 2014 concluded that the project would be environmentally, technically and economically viable and produce 570 000 oz over an initial ten-year mine life.