- Tanami Gold (TAM) and Northern Star Resources (NST) are set to commence mining the Groundrush deposit at the Central Tanami Project in the NT
- The pair have agreed to form a new joint venture, under which NST will pay $15 million to increase its stake in the project to 50 per cent
- The 50/50 joint venture company is set to independently manage and staff the project, with both parties responsible for funding the exploration
- Upon completion, the previous heads of agreement will be terminated
- Tanami Gold and Northern Star Resources shares last traded at 7.7 cents and $10.88 on May 7
Tanami Gold (TAM) and Northern Star Resources (NST) are set to commence mining the Groundrush deposit at the Central Tanami Project in the Northern Territory.
The pair recently agreed to form a joint venture, under which Northern Star will purchase a further 10 per cent interest in the project for $15 million cash, increasing its stake to 50 per cent.
Under the deal, the newly formed 50/50 joint venture company will independently manage and staff the project, with both companies being responsible for funding its exploration and development activities.
Upon completion, the companies’ previous heads of agreement will be terminated.
The partners envisage the new management company will develop a program to complete initial exploration drilling, engineering studies and a plant design as soon as possible.
Further, Northern Star is slated to enter into a service agreement with both Tanami Gold and the joint venture management company to provide select services, such as indigenous affairs, to the management company at market rates.
Tanami Gold and Northern Star Resources shares last traded at 7.7 cents and $10.88, respectively, on May 7.