Schematic showing the location of Kundana mines and major geological features. (Photo: Northern Star Resources)
Northern Star Resources Ltd. has completed the sale of its Kundana assets in Western Australia to Evolution Mining Ltd. for A$400 million (US$289.8 million). The sale was undertaken as part of Northern Star’s strategy to actively manage its asset portfolio with a view to maximizing financial returns.
Northern Star Managing Director and CEO Stuart Tonkin said the company has an exceptional pipeline of opportunities with the cashflow and balance sheet to unlock their full value. “The Kundana sale is consistent with our commitment to actively manage our portfolio and apply strict capital discipline with the objective of achieving the strongest financial returns,” Tonkin said.
The Kundana Assets comprise the Kundana Operations, Northern Star’s 51% interest in each of the East Kundana Production Joint Venture and the East Kundana Exploration Joint Venture, its 75% interest in the West Kundana Farm-in Joint Venture and the Carbine/Carnage gold project.
In fiscal year 2021, the Kundana assets produced 120,943 ounces (oz). Northern Star’s fiscal year 2022 production guidance of 1.55-1.65 million oz per year (oz/y) does not include production from the Kundana sale assets.
