- Mining giants Northern Star Resources (NST) has sold its Mt Olympus Project to Kalamazoo Resources (KZR) for $17.5 million
- Mt Olympus includes most of the Ashburton project, which is located 315 kilometres south of Karratha
- Speaking to the sell-off, the company said Mt Olympus “no longer fits” in with its portfolio
- Kalamazoo will purchase the project for a deferred contingent cash consideration
- On the market this morning, Northern Star is up 3.84 per cent and is selling shares for $13.53 each
- Meanwhile, Kalamazoo remains steady, trading for 48.5 cents each
Mining giants Northern Star Resources (NST) has handballed its Mt Olympus Project to Kalamazoo Resources (KZR) as it “no longer fits” in with the company’s portfolio.
Kalamazoo will purchase the project for a deferred contingent cash consideration of $17.5 million.
The cash consideration includes $5 million on mining the first 250,000 tonnes of ore and a two per cent Net Smelter Royalty (NSR) on the first 250,000 ounces of gold produced (worth approximately $12.5 million), with a 0.75 per cent NSR on any subsequent gold produced from the tenements.
Additionally, the same NSR’s will also be applied to any other metals produced from the tenements.
Mt Olympus includes most of the Ashburton project, which is located 315 kilometres south of Karratha in the Pilbara region of Western Australia.
“The Ashburton Project no longer fits in Northern Star’s portfolio but still has strong potential on both the exploration and production fronts,” Northern Star Executive Chair Bill Beament said.
“The royalty structure also enables Northern Star to retain an exposure to the project,” he added.
On the market this morning, Northern Star is up 3.84 per cent and is selling shares for $13.53 each, while Kalamazoo remains steady, trading for 48.5 cents each at 10:50 am AEST.