Northern Star Resources Limited
(ASX:NST) has reached a joint venture agreement with mineral investor Resource and Investment NL
(ASX:RNI) for exploration works on the Cashmans copper-gold project in Western Australia’s Bryah Basin.
Under the terms of the JV, RNI will spend $500 thousand over three years to earn a 51 per cent interest in the project in an initial earn-in phase.
If RNI’s interest reaches 70 per cent in the second phase of the venture, Northern Star retains the option of retaining a 49 per cent interest by paying $3 million cash.
On discovery of a 200 thousand tonne contained copper deposit, RNI must pay Northern Star $1 million in cash or shares.
Northern Star generated a net profit of $28.3 million in fiscal 2013.
