- Northern Star Resources (NST) enters an agreement with Strickland Metals (STK) to acquire its Millrose project in Western Australia
- The company announced that $41 million of the $61 million deal would be paid in cash, with the remainder of the deal paid through the issuance of 1.5 million ordinary NST shares
- The Millrose project holds an MRE of 346,000 ounces gold at 1.8 grams per tonne
- The project resides just 40 kilometres from Northern Star’s Jundee operation, with the gold project expected to be a supplementary feed to the project
- NST jumped 1.95 per cent to $12.54, while STK rose 2.22 per cent to 4.6 cents at 12:50 pm AEST
Northern Star Resources (NST) has entered an agreement with Strickland Metals (STK) to acquire its Millrose project in Western Australia.
The company reported that $41 million of the $61 million deal would be paid in cash, with the remainder of the deal paid through the issuance of 1.5 million NST shares.
Northern Star also agreed to pay a $2 million cash deposit to secure the deal, with the remainder of the funds paid within 30 days of completion of the transaction.
The Millrose gold project holds a mineral resource estimate of 346,000 ounces gold at 1.8 grams per tonne.
The project resides just 40 kilometres from Northern Star’s key asset Jundee operation, with the gold project expected to be a supplementary feed to the project.
“The acquisition of the Millrose gold project presents a very compelling development opportunity that is accretive to the Jundee life of asset plan as it should deliver us a sizeable low-cost, high-grade supplementary resource feed,” Northern Star Managing Director Stuart Tonkin said.
Strickland plans to use the money from the agreement to further fund its existing projects in the Yandal Greenstone Belt.
Meanwhile, Northern Star also announced it was entering a long-term power supply agreement with Zenith Energy for the supply of electricity to the Jundee Operations.
Zenith will supply Northern Star with wind and solar energy generators as well as battery storage to power 56 per cent of the site.
The company has pledged to reduce its carbon footprint by 35 per cent before 2030.
NST jumped 1.95 per cent to $12.54, while STK rose 2.22 per cent to 4.6 cents at 12:50 pm AEST.