Northern Star Resources will sell its Kundana gold mining operations to Evolution Mining for $400m cash.
This includes Northern Star’s 51% interest in each of the East Kundana Production Joint Venture and the East Kundana Exploration Joint Venture, its 75% interest in the West Kundana Farmin Joint Venture, and the Carbine/Carnage gold project.
Evolution will be offering employment contracts to and assuming liabilities for all of Northern Star’s transferring employees.
In FY21, the Kundana assets produced 120,943oz. The combined resource estimate is 2.4Moz, including reserves of 579,000oz .
Proceeds from the sale will be invested in advancing Northern Star’s pipeline of growth projects.
Northern Star managing director Stuart Tonkin said the sale represented an opportunity to liberate value from a package of assets that were no longer required for delivery of the company’s strategic objectives, after an intense period of growth including the merger with Saracen and the recent KCGM-led increase in resources and reserves.