Northern Star Resources (ASX:NST) has entered into an agreement with PolarX (ASX:PXX) to earn up to 70% of the Alaska Range Project in the US, via an incorporated joint venture.
Northern Star, which has a market capitalisation of $26.6 billion, will make a series of staged cash payments totalling US$39 million ($60.12 billion), which will be used to fund exploration and resource expansion programs.
The agreement will facilitate up to five years of exploration and Prefeasibility Study activities, with work programs to initially be conducted by PolarX as manager and Northern Star assisting.
PolarX is required to obtain shareholder approval for the company to form a joint venture, which is expected to be sought at a general meeting in October 2025.
Northern Star will offset its existing US$2 million loan against its initial US$5 million joint venture contribution, with a US$3 million cash payment subject to PolarX shareholder approval.
PolarX previously conducted a Scoping Study in 2024 for the Alaska Range Project, which unveiled a projected net present value of $625 million and an internal rate of return of 73.9%, based on an assumed copper price of US$8,500 per tonne and a gold price of US$1,900 per ounce.
Northern Star is currently PolarX’s largest shareholder and a large Australian gold producer. The company owns and operates three production centres and one development project.
PolarX is a mineral explorer and developer focused on copper, gold, and silver discoveries.
Write to Aaliyah Rogan at Mining.com.au
Images: PolarX
