PERTH (miningweekly.com) – Junior Tanami Gold has struck a joint venture (JV) agreement with gold miner Northern Star Resources to start mining the Groundrush deposit, at the Central Tanami JV, in the Northern Territory.
Under the terms of the agreement, Northern Star would purchase a further 10% stake in the project, for A$15-million, taking its share in the JV to 50%.
A new management company comprising two representatives from each company would manage the project.
Tanami Gold on Monday told shareholders that the agreement would provide a pathway for exploration and development at the Central Tanami project.
The agreement is subject to Ministerial approval as well as Tanami Gold shareholder approval, a condition which could be waived by the company.
In addition to the JV agreement, Northern Star has also entered into a service agreement with Tanami Gold and the JV management company, under which it would provide certain services such as Indigenous affairs to the management company, at market rates.