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RNI signs exploration deal with Northern Star

4th December 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Gold miner Northern Star Resources has signed a joint venture (JV) agreement with fellow ASX-listed Resource and Investment (RNI) in Western Australia.

The JV would enable RNI to expand its Cashmans copper/gold project to some 500 km2 by incorporating Northern Star’s Cheroona copper/gold project into the project area.

Phase 1 of the JV would allow RNI to earn a 51% stake in the Cheroona project by spending some A$500 000 on exploration over the next three years. The junior could then increase its stake in the project to 70% by spending a further A$800 000.

Once RNI has reached this point, Northern Star would have a one-off right to claw back to 49% shareholding by paying A$3-million in cash to RNI.

RNI told shareholders on Wednesday that the JV agreement allowed the company to extend its targeting concepts into the Northern Star tenements, adding that in addition to the targets already identified at Cashmans, a series of versatile time domain electromagnetic survey and airborne magnetic targets had been identified in the JV tenements, which require additional assessment.

The company noted that the Northern Star JV was in line with its strategy of advancing its suite of exploration projects in the Bryah basin through systematic exploration programmes.

Edited by Creamer Media Reporter

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