A news release just came out from Kalamazoo Resources which states that the company is acquiring the “Mt Olympus Project” from Northern Star Resources Limited (Market Cap of A$10 B).
(Novo owns 8% on an undiluted basis and 16% on a diluted basis)
CLICK HERE to read the full news release.
Northern Star Resources Limited (ASX: NST) advises that it has agreed to divest the Mt Olympus Project comprising
most of the Ashburton Project in Western Australia to Kalamazoo Resources Limited (ASX: KZR) for a deferred
contingent cash consideration of A$17.5 million.
The deferred cash consideration is as follows:
- A$5 million on mining of the first 250,000 tonnes of Ore; and
- a 2% Net Smelter Royalty (NSR) on the first 250,000oz of gold produced (worth an estimated A$12.5 million
using the current spot gold price of A$2,500/oz), with a 0.75% NSR on any subsequent gold produced from the
- the same NSR’s will also apply on any other metals produced from the tenements.
Northern Star Executive Chair Bill Beament said: “The Ashburton Project no longer fits in Northern Star’s portfolio
but still has strong potential on both the exploration and production fronts. The royalty structure also enables
Northern Star to retain an exposure to the project.”
The Ashburton Project has a JORC Code 2012 Mineral Resources of 20.79Mt @ 2.45gpt gold containing 1.65Moz