Northern Star has completed the sale of its Kundana assets in the Eastern Goldfields of Western Australia to Evolution Mining for $400 million.
The transaction includes 100% the Kundana operations, 51% interest in each of the East Kundana production Joint Venture (JV) and the East Kundana exploration JV, 75% interest in the West Kundana farmin JV, and the Carbine / Carnage gold project.
Northern Star Managing Director and CEO Stuart Tonkin said the sale was in line with the company’s strategy to actively manage its asset portfolio with a view to maximising financial returns.
“The Kundana sale is consistent with our commitment to actively manage our portfolio and apply strict capital discipline with the objective of achieving the strongest financial returns,” Mr Tonkin said.
“On behalf of Northern Star, I would like to thank Evolution for its co-operation and support throughout the transaction.”
Evolution’s Executive Chairman, Jake Klein said the Kundana assets – which are located within 8km of the company’s Mungari operations – provide important strategic opportunity for Evolution to optimise the value of its existing infrastructure and capture significant operational synergies.
“The consolidation of these assets elevates Mungari into the fourth cornerstone asset in Evolution’s portfolio through increased production, mine life, and Mineral Resources,” Mr Klein added.
“This Transaction continues Evolution’s track record of identifying and securing opportunities that are both accretive and improve the quality of the portfolio.
“We now look forward to integrating the operation and delivering on the clear and significant synergies. I extend a warm welcome to our new colleagues at the Kundana and EKJV operations who join Evolution today.”