Gold miner Northern Star Resources has struck a A$17.5-million deal with fellow-listed Kalamazoo Resources to divest of its Mt Olympus project, comprising most of the Ashburton project, in Western Australia.
Under the terms of the agreement, Northern Star would receive a A$5-million deferred cash consideration on mining of the first 250 000 t of ore, as well as a 2% net smelter royalty on the first 250 000 oz of gold produced, worth an estimated A$12.5-million using the current spot gold price, with a 0.75% net smelter royalty applicable on any subsequent gold production from the tenements.