Star Minerals (ASX:SMS) has begun exploration at the Tumblegum South Gold Project, which it acquired from Albright Metals (ASX:ABR), marking a milestone in the 2021 sale of the project.
Star Minerals has issued 4 million shares to Albright following the start of mining operations at Tumblegum South.
Albright CEO Greg Hill says the shares add to the company’s liquid assets, which can help fund exploration and development activities at the Golden Pike Project.
“The team at Star Minerals is to be commended for bringing the Tumblegum South Gold Project into production at a time of historically high gold prices,” Hill says.
Albright sold the Tumblegum South Project in 2021 for consideration comprising shares and performance rights in Star Minerals.
The company will receive one fully paid ordinary share in Star Minerals for each vested performance right, with Star Minerals trading at $0.053 per share at close on 15 May 2026, valuing the shares to be issued in this transaction at $212,000.
A further 3 million performance rights will vest on the declaration of a measured resource estimate for the Tumblegum South Gold Project.
Earlier this month, Mining.com.au reported that Star Minerals had begun blast hole drilling at the project, with mining contractor MEGA Resources completing the first blast on 12 May.
Star Minerals is an Australian gold developer, bringing the Tumblegum South Gold Project near Meekatharra into production in 2026.
Albright Metals is a mineral explorer focused on antimony, copper, gold, lithium, and manganese across Australia and Canada.
Write to Maddison Elliott at Mining.com.au
Images: Star Minerals
