Northern Stars sells its Kundana assets to Evolution for $400m

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Image credit: Northern Star

Northern Star Resources Limited has agreed to sell its Kundana assets in the Eastern Goldfields of Western Australia to Evolution Mining in a deal valued at $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 Stuart Tonkin said proceeds from the sale of the assets that were ‘no longer required for delivery of the company’s strategic objectives’ would be invested in advancing Northern Star’s pipeline of growth projects.

“The sale of these assets is consistent with our strategy to employ capital where we believe it will generate the greatest return,” Mr Tonkin said.

Adertisement

“This is a great outcome for all stakeholders, including all our employees working at these assets, who will be offered continuity under Evolution’s ownership.”

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 acquisition assets are located in close proximity to Mungari’s processing infrastructure, with all key mining operations and identified orebodies located within 8km of the Mungari mill,” Mr Klein noted.

“This unlocks the ability to capture valuable unique synergies and provides significant operational flexibility for the combined operations.

“The transaction improves Mungari on a production, mine life, and Mineral Resources basis. We are also excited about the exploration potential that the consolidated land package holds, which represents further mine life extension opportunities for Mungari.”

Image credit: Northern Star