Company cited lack of funds for the limited exploration work it had done at the gold project
KalNorth Gold Mines has agreed to sell the Kurnalpi project in Western Australia to Northern Star (Carosue Dam) (NSCD), a fully-owned subsidiary of Northern Star Resources, for AUD18m ($14m).
The gold project is located nearly 85km north-east of Kalgoorlie. It is made up of 27 tenements, owned by KalNorth Gold Mines and its fully-owned subsidiary Shannon Resources.
KalNorth Gold Mines said that its exploration work at the Kurnalpi project has been curbed severely over the last many years due to lack of funding. Apart from that, the company revealed that it was not able to bring in new investors.
Further, it added that it could not properly document its vision for comprehensive exploration activities to target new discoveries and extend existing discoveries on the gold project.
The company stated: “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.”
The Kurnalpi project has a combined indicated and inferred resource of 6.17Mt @ 1.2 g/t for 228,800oz Au.
KalNorth Gold Mines is said to have identified various deposits in the project area. Of these, the Brilliant deposit has been identified as a major target of gold mineralisation.
Recently, the gold exploration company had announced the sale of the Lindsay’s Project, located 65km north north-east of Kalgoorlie.
After the conclusion of the sale of the Kurnalpi project, KalNorth Gold Mines will not have any mineral assets left. The closing of the sale of Kurnalpi will be subject to various preceding conditions.