Australian gold miner Northern Star Resources Ltd said on Thursday it agreed to sell its Kundana operations in Western Australia to peer Evolution Mining Ltd for A$400 million ($294.28 million).
Evolution, in a separate exchange filing, said the acquisition raises its three-year gold production outlook, with fiscal 2022 production now expected between 700,000 and 760,000 ounces, up from 680,788 ounces in 2021.
The assets include Northern Star’s 51% stake in each of East Kundana’s production and exploration joint ventures, a 75% stake in a West Kundana farm-in joint venture, and the company’s Carbine gold project.
“The sale of these assets is consistent with our strategy to employ capital where we believe it will generate the greatest return,” Northern Star Managing Director Stuart Tonkin said in a statement.
Northern Star, which merged with Saracen Mineral earlier this year, will invest the proceeds from the sale to advance its pipeline of growth projects.
($1 = 1.3592 Australian dollars)
(By Sameer Manekar; Editing by Devika Syamnath)