Northern Star Resources (ASX: NST) has today completed the sale of its Kundana assets in WA to Evolution Mining (ASX: EVN) for $400m.
The Kundana assets comprise the Kundana operations, 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 farm-in joint venture and the Carbine/Carnage gold project.
Evolution Mining executive chairman Jake Klein says the consolidation of these assets elevates Mungari into the fourth cornerstone asset in Evolution’s portfolio through increased production, mine life and mineral resources.
“This transaction continues Evolution’s track record of identifying and securing opportunities that are both accretive and improve the quality of the portfolio,” he said.
Evolution Mining’s Tier 1 Mungari gold operation is 600km east of Perth, 20km west of Kalgoorlie and consists of underground mining at Frog’s Leg and open pit mining at White Foil and Cutters Ridge.
The completion of the Kundana acquisition today adds additional underground mines within 8km of Evolution’s low-cost Mungari mill and extends Mungari’s mine life.
Expansion plans earmarked for the mill aims to increase production at the Mungari asset to 200kozpa.
In FY21, the Kundana assets produced 120,943oz of gold. Northern Star’s production guidance of 1.55-1.65Mozpa does not include production from the Kundana sale assets.
