Northern Star Resources Ltd
(ASX:NST), has agreed, in principle, to sell its Plutonic gold mine in Western Austraila to Canadian-owned Billabong Gold.
Under this deal, Northern Star will receive $12.5 million in cash once the parties sign a conditional Sale and Purchase Agreement. This deal is also conditional on FIRB approval and Ministerial consents.
Northern Star can also expect to receive $25 million from this sale, or a 33 percent stake in Billabong’s parent company – whichever is worth more. However, that depends on whether Billabong lists on the Toronto Stock Exchange within 6 months of this deal.
Billabong has exclusive rights until 15 August, and the parties are aiming to complete this deal in September.
Northern Star reported a net profit of $65.1 million at 31 December 2015.
