Regis Resources (ASX:RRL) has agreed to acquire the mining licence for the Southern Star gold prospect in Western Australia from Great Southern Mining (ASX:GSN) for up to $9 million in cash. The consideration includes an initial $4 million cash payment and contingent payments of up to $5 million based on gold price thresholds and the discovery of additional economic mineralisation. Regis Resources is an Australian gold producer focused on its portfolio of assets within the nation.
In addition to the acquisition, Regis has been granted a right of first offer on defined resources up to one million ounces of gold-equivalent within Great Southern’s tenure in the Duketon Greenstone Belt. Both companies have also entered into a strategic data collaboration and sharing agreement to expedite new discoveries in the Duketon Greenstone Belt. Following the sale, Great Southern will retain granted exploration licences covering 421 square kilometres in the Duketon Belt and a further 438 square kilometres under application.
Great Southern Mining’s Managing Director Matthew Keane described the transaction as beneficial for both companies. He stated that it provides a strong capital boost to fund aggressive exploration across Great Southern Mining’s highly prospective Duketon tenure, which remains largely underexplored. Great Southern Mining is an Australian mineral explorer focused on discoveries in the Laverton district of Western Australia and Mt Carlton in north Queensland.
Keane added that Regis is well-positioned to leverage the near-term development upside from Southern Star. The Southern Star prospect is located 3.5km south of Regis’ Ben Hur open pit. Regis has up to 10 million tonnes of installed processing infrastructure in the Duketon Belt and has delineated more than 10 million ounces of gold mineral resources.
