Northern Star Resources Limited (ASX: NST) advises that it has...

Northern Star Resources Limited (ASX: NST) advises that it has agreed to divest the Mt Olympus Project comprising most of the Ashburton Project in Western Australia to Kalamazoo Resources Limited (ASX: KZR) for a deferred contingent cash consideration of A$17.5 million.

The deferred cash consideration is as follows:▪ A$5 million on mining of the first 250,000 tonnes of Ore; and▪ a 2% Net Smelter Royalty (NSR) on the first 250,000oz of gold produced (worth an estimated A$12.5 million using the current spot gold price of A$2,500/oz), with a 0.75% NSR on any subsequent gold produced from the tenements; and▪ the same NSR’s will also apply on any other metals produced from the tenements.

Northern Star Executive Chair Bill Beament said: “The Ashburton Project no longer fits in Northern Star’s portfolio but still has strong potential on both the exploration and production fronts. The royalty structure also enables Northern Star to retain an exposure to the project.”