Northern Minerals Limited (ASX:NTU; Northern Minerals) is pleased to advise that it has entered into a binding Tenement Sale Agreement with Northern Star Resources (ASX:NST; Northern Star Resources) to sell a package of exploration licences in the Tanami region of the Northern Territory for $1.25 million in cash.
In addition, Northern Star Resources has agreed to pay a further $1.5 million in cash upon establishment of a one million-ounce JORC-compliant Inferred Mineral Resource on the tenements, subject to the transaction.
The package includes 12 granted exploration licences covering 3350km2 and a further 3360km2 subject to exploration licence applications (Figure 1).
Under the deal, Northern Minerals will retain the rare earth rights on all ground, with Northern Star Resources holding the rights to all other minerals, including gold.
Northern Star will also gain the gold exploration rights at Northern Minerals’ Boulder Ridge Rare Earth project in the Tanami region. In addition, Northern Minerals will acquire the rights to rare earth elements in 4 exploration licences which Northern Star Resources has agreed to acquire from Toro Energy Limited (ASX:TOE; Toro Energy), namely EL26270, EL26286, EL26635 and EL27590. This follows a mutually agreed restructure of the transaction originally announced by Northern Minerals on 14 March 2016.
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