Tanami Gold looks to offload WA gold project to Northern Star for $4m
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Northern Star Resources is seeking to buy Tanami Gold’s interest in the Western Tanami gold project in Western Australia for $4 million cash.
Both stocks have fallen following the news with Tanami Gold (ASX:TAM) trading 4 per cent lower at 4.7c while Northern Star (ASX:NST) has dipped 1.3 per cent to $4.82 at noon AEDT.
The transaction will see Northern Star acquire Tanami’s subsidiary Tanami Gold Exploration which owns the project.
Tanami now requires shareholder approval for the sale and signoff from the Department of Mines.
Western Tanami comprises several tenements, a 350,000 tonne per annum carbon-in-leach treatment plant, accommodation village and infrastructure.
The project was placed on care and maintenance in 2013 following disappointing drill results at the Coyote gold mine.
The sale allows Tanami to focus on the joint development of the Central Tanami project with Northern Star.