Solstice Minerals Ltd in $12.5M Sale To Northern Star Resources

Solstice Minerals Ltd (ASX: SLS) has divested an 80% interest in an exploration license to $17.4B capped Northern Star Resources (ASX: NST) for $12.5 million.

It is a logical step for Northern Star as the Hobbes Exploration Licence E31/1117 contains the Hobbes Gold Deposit and is located near Northern Star’s open-pit and underground gold mines at Porphyry.

It is also near its Carosue Dam production hub.

Completing the sale will add A$10m to Solstice’s $8.2m cash balance as of 31 December 2023.

The agreement is subject to limited conditions precedent and is expected to be completed in the coming weeks.

Solstice has succeeded in discovering and monetising gold targets that are hidden under transported cover and discovered reasonably late in the exploration process via air core drilling.

The sale proceeds will underpin the search for new gold deposits across the Company’s extensive Yarri Project and other landholdings.

The remaining 20% interest is held by an unrelated private company that has also agreed to sell its interest in the Hobbes Exploration Licence to Northern Star on substantially the same terms.

The Hobbes Gold Deposit was quantified during 2023 and contains an Inferred Mineral Resource Estimate (MRE) of 4.6 million tonnes at 1.2g/t Au for 177,000 ounces of gold.

The deposit lies under approximately 40m of barren material and will be most efficiently progressed via nearby infrastructure.

Hobbes is a good example of ‘blind’ gold mineralisation hidden under transported cover and discovered reasonably late in the exploration process via air-core drilling.

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