Northern Star Resources and Tanami Gold have restructured the Central Tanami joint venture (JV) in the Northern Territory, in an effort to commence mining as soon as possible.
The restructure will enable a 50/50 JV between the two companies to progress the gold project.
Northern Star will purchase an additional 10 per cent of the project under the restructured JV for $15 million.
The two companies are hoping to start mining the project’s Groundrush deposit, which was discovered by Newmont in 1999.
Tanami Gold stated a new management company will be formed to manage the project.
It will be comprised of two representatives each from Tanami Gold and Northern Star.
Under the updated JV, both companies will be jointly responsible for funding exploration and development activities undertaken by the proposed company.
According to Tanami Gold, the new company will complete exploration drilling, engineering studies and plant design through a new program.
Northern Star will also provide services including indigenous affairs to the JV management company as part of a service agreement.
The transaction is subject to ministerial approval and Tanami Gold shareholder approval.
The Central Tanami project has been placed on care and maintenance since late 2005 during rehabilitation of the site by Newmont.
In 2010, Tanami Gold acquired the project and conducted resource drilling to support the recommissioning of mining at the site.
In 2015, Northern Star acquired a 25 per cent interested in the Central Tanami operations from Tanami Gold.
The company also purchased Tanami Gold’s Western Tanami project in 2017 in the Northern Territory.