KalNorth Gold Mines has signed an agreement to sell the Kurnalpi project in Western Australia to Northern Star Resources’ subsidiary Northern Star (Carosue Dam) for $14m (A$18m).
Located 85km north-east of Kalgoorlie, on the north-north-west trending Norseman-Wiluna greenstone belt, the gold project is made up of several tenements.
As per the estimates, the Kurnalpi project has a combined indicated and inferred resource of 6.17Mt @ 1.2 g/t for 228,800oz Au.
The gold exploration company earlier identified several deposits in the Kurnalpi project area, with the Brilliant deposit identified as a key target of gold mineralisation.
However, owing to the lack of funding, KalNorth Gold Mines’ exploration work at the Kurnalpi project has been curbed severely over the past several years.
In a press statement, the firm said: “Having been in discussion with various parties prior to now and having taken specialist corporate advice, the Directors are strongly of the view that this sale transaction to NSCD represents the best outcome for the Group’s realisation of value from the Kurnalpi Project and will be recommending that shareholders approve the sale of the Kurnalpi Project.”
Subject to the completion of the deal, KalNorth Gold Mines will not have any mineral assets left.
The transaction is subject to various preceding conditions.
Earlier, KalNorth Gold Mines announced the sale of the Lindsay’s Project, located 65km north north-east of Kalgoorlie in Western Australia.