Australian mineral exploration company Strickland Metals has closed the sale of its interests in the tenements comprising the Millrose project in Western Australia (WA) to Northern Star Resources (NSR) for A$61m ($41.4m).

The 600km² Millrose project is located south of Strickland’s Horse Well gold resources, next to the Yandal East project in WA.

Strickland Metals received a A$2m cash deposit at the signing of the agreement, which was announced in June 2023. The company also received A$39m on completion of the transaction.

NSR also issued 1.5 million fully paid ordinary shares to Strickland Metals as consideration on closing, which is subject to one-year escrow.

Strickland Metals CEO Andrew Bray said: “We now have one of the strongest balance sheets in the junior exploration space, along with a portfolio of very promising, advanced exploration projects. Work is commencing imminently on a number of prospects at the Yandal gold project, as well as at Iroquois and the wider Earaheedy base metal project.

“The company’s balance sheet also enables Strickland to consider acquisitions complementary to its existing projects.”

The Millrose project comprises nine exploration licences and one mining lease application. There has been minimal exploration at the site for the past 15 years.

Strickland earlier said it plans to use the proceeds from the transaction to undertake large-scale reverse circulation drilling and diamond drill programmes at its Horse Well project, the Cowza prospect within the Yandal East project and the Dusk til Dawn project.

The proceeds will also be used to upgrade Strickland’s portfolio of gold prospects, continue base metal exploration at its Iroquois project and explore new opportunities.