Tanami Gold to sell project to Northern Star

Junior miner Tanami Gold has entered into an agreement for the sale of its Western Tanami gold project in the Northern Territory to Northern Star Resources for $4 million in cash.

The asset, which was mothballed in 2013, comprises various tenements, a 350,000 tonne per annum carbon-in-leach treatment plant, an accommodation village and infrastructure.

“The board has determined in the circumstances that the transfer of all of the company’s interest in the assets and its exposure to the liabilities of the Western Tanami project to Northern Star is appropriate on the agreed terms,” Tanami said in a statement.

“The proposed transaction is designed to provide Tanami Gold with a clean exit from the project.

“Following completion of the transaction, the board will continue to focus on the joint development of the Central Tanami project with Northern Star.”

In 2015, Northern Star outbid Metals X for a stake in the Central Tanami project. It can earn up to 60 per cent in the asset by sole funding all costs required to bring it into production.

Tanami shares were 4 per cent lower to 4.7 cents each, while Northern Star shares were 0.7 per cent lower to $4.85 each, at 10:30am.