Nexus Minerals (ASX:NXM) has agreed to acquire Northern Star Resources’ (ASX:NST) remaining 10% interest in the Pinnacles Gold Project for a 1.5% net smelter return royalty.
The transaction terminates the joint venture and gives Nexus 100% ownership of the project, located 100km northeast of Kalgoorlie in Western Australia and 15km south of Northern Star’s Carosue Dam operations.
Nexus can repurchase 0.5% of the Northern Star royalty for $550,000 at any time. The transaction is scheduled to complete by 30 September 2026, subject to satisfaction or waiver of conditions precedent regarding existing legacy royalty agreements and ministerial consent.
Pinnacles hosts a JORC 2012-compliant mineral resource estimate (MRE) of 609,000 tonnes @ 4 grams per tonne gold (Au) for 78,000 ounces.
The project is located on a granted mining lease and has a native vegetation clearing permit valid to November 2030. Metallurgical test work has returned recoveries of about 97%.
“This transaction consolidates our position at Pinnacles and provides us with complete control over the development timeline and mining strategy,” Managing Director Andy Tudor says.
The underground MRE comprises 450,000 tonnes @ 4.6g/t Au for 66,000 ounces, with the remainder contained within the open pit resource.
The company plans to submit a mine development and closure plan following transaction completion.
Nexus holds a 192km² land package in the Eastern Goldfields, including the Wallbrook Gold Project immediately north of Northern Star’s multi-million-ounce Carosue Dam mining operations.
Write to France Pinzon at Mining.com.au
Images: Unsplash
