Northern Star acquires Solstice licence

Shares in mining exploration company Solstice Minerals rose by 50 per cent on Tuesday, following news it will divest an 80 per cent stake in its Hobbes exploration licence to Northern Star Resources. 

The Subiaco-based company closed trade at 15 cents per share, its highest price since June 23 last year. 

Solstice told the market the deal was likely to completed in a few weeks, due to limited conditions.

Under the arrangement, Solstice will receive $10 million in cash from Northern Star - who will also pay an additional $2.5 million for the remaining 20 per cent stake in the licence from a private minority holder.

The licence acquisition, which includes the Hobbes gold deposit, is located 5km south-west of Northern Star's Porphyry mining centre in Western Australia's Goldfields region, where the company operates underground and open-pit gold mines.

Its Carosue Dam mill is also based 36km south of Porphyry.

Following completion of the deal, Solstice said it will have $18.2 million cash in the till, which will allow it to pursue new activities within its existing portfolio.

"The divestment of the company’s interest in the Hobbes exploration licence will allow the company to concentrate its resources on new prospects within and around the Yarri Gold project, Ringlock dam and the Ponton project, and assess new commercial opportunities that can add value for shareholders."

Northern Star generated a net profit after tax of $198.5 million during the first six months of the 2024 financial year, up 150.8 per cent, or $47.7 million, from the prior corresponding period.