Western Australian company Tanami Gold has agreed to a deal with Northern Star Resources for the sale of its $4 million interest in the Western Tanami gold project.
Northern Star will buy the WA-based project through the acquisition of Tanami Gold Exploration, a 100 per cent owned subsidiary of Tanami Gold and the legal owner of the property. Northern Star may also purchase all project assets at a future juncture, subject to notice.
The Western Tanami project includes a 350,000 tonne per annum carbon-in-leach treatment plant, several tenements, and other associated infrastructure.
So far, the project’s results have been somewhat underwhelming, particularly following disappointing returns from the Coyote gold mine’s Kavanagh lode in 2013.
Previously, Northern Territory exploration company ABM Resources had been given the option to purchase the project in 2014, but this lapsed in 2016, opening it up to new buyers.
Following the completion of the sale, Tanami Gold is expected to turn its attentions to joint development of its larger Central Tanami Project — located on the NT side of the Tanami Desert — with Northern Star.