MGX Resources has completed the acquisition from Northern Star Resources of a 50 per cent interest in one of Australia’s highest-grade undeveloped gold projects.

The Central Tanami project in the Northern Territory hosts a mineral resource of 13.8 million tonnes at 3.6 grams per ton of gold for 1.6 million ounces of contained gold and includes more than 2100 square kilometres of tenements.

Under the sale terms, Northern Star’s joint venture interest and adjacent wholly-owned exploration land holdings are to be transferred to MGX upon satisfaction of conditions including regulatory approvals.

The consideration equates to an attractive resource multiple and reflects strong investor interest in central Australian gold projects at a cost of $50 million.

The joint venture assets include granted mining leases, a carbon-in-leach processing plant (non-operating) and infrastructure such as haul roads, an accommodation camp, bore field, and a gravel airstrip.

“Work in the near term will focus on defining the development plan, securing relevant approvals and accelerating development activities. This project represents a substantial transformational opportunity to establish a new long-life Australian gold business in a strongly positive gold price environment,” MGX chief executive officer Peter Kerr said.

Tanami Gold NL remains the other 50 per cent partner in Central Tanami, with both parties historically funding exploration and development activities in the region.

The transaction allows MGX to expand into gold while maintaining exploration continuity with Tamani Gold on broader project objectives.

Completion of the acquisition positions the project for next stages of study and potential advancement toward a development decision as the new ownership structure takes full effect.

Read more: How gold’s latest record reshapes the outlook for Australian miners

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