Gold miner Regis Resources has agreed to acquire mining licence M38/1299, host to the Southern Star gold prospect, from Great Southern Mining for up to A$9 million in cash payments. Southern Star is located 3.5 kilometres south of Regis’ Ben Hur open pit mine in Western Australia.
“This transaction is beneficial for both Great Southern Mining and Regis. It delivers a strong capital boost to fund aggressive exploration across GSN’s highly prospective Duketon tenure, most of which remains underexplored,” said Great Southern Mining Managing Director Matthew Keane.
“Meanwhile, Regis is perfectly positioned to leverage the near-term development upside from Southern Star. It’s a deal that creates immediate value and sets the stage for new discoveries in the Duketon Belt.”
In addition to the asset sale, the companies have entered into a strategic data collaboration and sharing agreement for the purpose of expediting discoveries in the Duketon Greenstone Belt. Post-sale, Great Southern Mining will retain granted exploration licences totalling 421 km2 in the Duketon Belt and a further 438 km2 under application.
Regis attains a first right of offer on defined JORC Mineral Resources up to 1 million ounces of gold equivalent within Great Southern Mining’s tenure in Duketon Belt.
Source: Regis Resources