MGX Resources (ASX:MGX) has completed its acquisition of a 50% stake in the Central Tanami Gold Project in the Northern Territory from Northern Star Resources (ASX:NST).
The company paid a $50 million cash consideration to complete the acquisition, while also replacing existing bank guarantees for around $5.8 million.
MGX has acquired 3,600km2 of exploration tenure in this agreement, located in the Central Tanami region and outside the joint venture area.
MGX CEO Peter Kerr says the company completed this acquisition of the joint venture ahead of schedule.
“Work in the near term will focus on defining the development plan, securing relevant approvals, and accelerating development activities,” Kerr says.
“This project represents a substantial transformational opportunity to establish a new long-life Australian gold business in a strongly positive gold price environment.”
MGX Resources will be working with Tanami Gold to define development pathways for the Central Tanami Gold Project in the Northern Territory.
Write to Maddison Elliott at Mining.com.au
Images: MGX Resources
