West Australian gold producer Northern Star Resources Limited (ASX:NST) says it is set for an exploration blitz after acquiring a joint venture (JV) interest over ground owned by iron ore producer Fortescue Metals Group Limited (ASX:FMG).
Under the deal Northern Star has inked a farm-in and JV for an area surrounding its Paulsens mine in Western Australia to earn up to a 60 per cent JV interest from Fortescue in the non-iron ore rights to key tenements.
Northern Star will pay $2 million upfront for a 25 per cent JV interest and has the right to earn an extra 35 per cent JV interest by spending an additional $4 million within two years.
Northern Star says the exclusive non-iron ore JV with Fortescue covers more than 400 kilometres of strike along two highly prospective parallel structural corridors.
The miner plans to target both structures as part of a $20 million exploration blitz this year.
Northern Star Resources reported a net profit of $22 million in the 2012 financial year.
