Mount Gibson Iron has acquired Northern Star Resources’ 50 per cent interest in the Central Tanami project in the Northern Territory.
Under a binding conditional agreement, Mount Gibson will also take control of Northern Star’s exploration landholding adjacent to the project site. The $50 million price tag is payable in cash on completion, with Mount Gibson planning to fund the acquisition through its internal reserves.
The Central Tanami project comprises over 2100km2 of mining and exploration tenements in an area approximately 650km northwest of Alice Springs. The joint venture assets include granted mining leases, a carbon-in-leach processing plant (non-operating) and infrastructure such as haul roads, an accommodation camp, bore field, and a gravel airstrip.
Across the project, there is an expected 13.8 million tonnes of ore, at grades of 3.6 grams per tonne for 1.6 million ounces of contained gold. Strong potential exists to increase the resource base through further exploration drilling.
The other half of the joint venture is owned by Tanami Gold, an ASX-listed junior miner, which shares a common major shareholder with Mount Gibson.
The deal is conditional on approval by the Foreign Investment Review Board, as well as further extension of existing infrastructure arrangements by the Central Land Council. Tanami Gold also has a right of first refusal under its existing joint venture agreement with Northern Star.
Conditions will need to be satisfied before March 31, 2026, for completion of the deal to go ahead.
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