Northern Star acquires Ashburton
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Northern Star Resources says it has acquired the 668,000 ounce Ashburton gold project from Sipa Resources in exchange for royalties on future production.
Under terms of the agreement, Northern Star will pay Sipa a 1.74 per cent royalty on all gold production from the tenements, excluding the Merlin tenement and the first 250,000oz produced.
Northern Star will also pay Sipa a 0.75 per cent royalty on all gold production from the Merlin tenement, excluding the first 250,000oz, and replace approximately $445,000 in environmental bonds.
The deal includes the Mt Olympus gold mine, which has previously produced 340,000oz.
The entire Ashburton gold project comprises 961 square kilometres of mining and exploration tenements that come within 5km of Northern Star's Paulsen's gold mine.
Once the sale is completed, Northern Star said it would immediately focus on bringing the Ashburton project to production.
Northern Star managing director Bill Beament said the project was a key plank of the firm's growth strategy.
"We will proceed as quickly as possible to fully review the project, outline the key opportunities and implement a plan that generates wealth for Northern Star shareholders," Mr Beament said in a statement to the ASX.