21/10/2016 - 10:21

Northern Star in gold JV with Pioneer

21/10/2016 - 10:21

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Local gold miner Northern Star Resources has entered into a joint venture agreement to acquire a major stake in Pioneer Resources' Acra gold project near Kalgoorlie in a deal worth up to $3.5 million.

Northern Star in gold JV with Pioneer
Pioneer is exploring for gold near Kalgoorlie.

Local gold miner Northern Star Resources has entered into a joint venture agreement to acquire a major stake in Pioneer Resources' Acra gold project near Kalgoorlie in a deal worth up to $3.5 million.

Northern Star will acquire an initial 20 per cent stake in Acra for $500,000, and can earn a further 55 per cent interest if it funds $3 million in exploration and expenditure on the project over the next three years.

Pioneer will also have the option of selling its remaining 25 per cent stake to Northern Star, if the joint venture secures state government approval.

Pioneer managing director David Crook said that attracting Northern Star to the project with a commitment to actively explore endorsed the quality of the Acra gold project.

“Northern Star has a very good discovery record in the Kalgoorlie district, and will bring its organisational technical expertise and financial capacity to rapidly advance the Acra gold project without further financial impost to Pioneer until a mining proposal is approved” he said.

Northern Star must spend a minimum of $1.5 million on exploration before it can withdraw from the project.

Pioneer shares gained 5.2 per cent to 2 cents, while Northern Star shares fell 2.4 per cent to $4.03 each at 10:30am.

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