Tanami Gold and Northern Star have agreed to form a new 50/50 Joint Venture (JV) covering the Central Tanami Project.
Under the agreement, Northern Star will acquire a further 10% interest in the Central Tanami Project for $15m cash, increasing its stake to 50%.
The project will be managed by the JV management company – comprising two representatives each from Tanami and Northern – which will seek to procure suitably qualified staff to manage the project.
Tanami Gold said the management company will develop a program to complete the initial exploration drilling, engineering studies and plant design as soon as possible.
The proposed transaction, subject to Ministerial and Tanami Gold shareholders’ approval, will also see Northern Star enter into a service agreement with Tanami Gold and the JV management company to provide certain services such as indigenous affairs, at market rates.
