Gold producer Northern Star Resources Limited
(ASX:NST) says its exploration deal with iron ore producer Fortescue Metals Group Limited
(ASX:FMG) has moved ahead.
Under the farm-in and JV deal inked in January Northern Star can earn up to a 60 per cent JV interest from Fortescue in the non-iron ore rights to key tenements surrounding Northern Star’s Paulsens mine in Western Australia.
Northern Star has since advised all conditions were satisfied earlier this week and the company will now make an initial $2 million cash payment to Fortescue to acquire a 25 per cent interest in the non-iron ore rights.
Northern Star is now obliged to fund $4 million of exploration expenditure to earn an extra 35 per cent interest in the non-ire ore rights within two years.
Northern Star Resources net profit jumped 78 per cent to $22.3 million in the first half of the 2013 financial year.
