Northern Star spends $18m on new project

Northern Star Resources is purchasing a gold project near its Carosue Dam operations from KalNorth Gold Mines.

The Kurnalpi gold project, situated 85 kilometres north-east of Kalgoorlie, comprises a number of tenements including M28/70, which Northern Star’s Carosue Dam subsidiary (NSCD) has agreed to purchase from Petalyn Fisher for $4.6 million.

The total purchase consideration is $18 million.

The agreement, which includes a break fee of $180,000, is subject to a number of conditions including KalNorth obtaining shareholder approval.

The company anticipates a meeting with shareholders will be held in late April or early May.

The new deal comes days after Northern Star sold its entire 17.5 per cent stake in copper explorer Venturex Resources, with mining services company Mineral Resources picking up a large portion of the interest.

Northern Star's Bill Beament will be leaving his role as chairman in July to join Venturex as an executive director.