HIGHLIGHTS
Jackson was granted the royalty over Crossroads as part of the consideration for the sale of M24/462 (which hosts the deposit) to Barrick Gold in 2013 and following various assignments Northern Star is the current owner of that mining licence. As announced by CuFe on 31 May 2024 Northern Star received approval from the regulator DEMIRS for their mining proposal at Crossroads earlier this year which facilitates development of the project.
The sale and purchase agreement is expected to complete within 5 business days of signing unless otherwise agreed by the parties.
The Company intends to use the sale proceeds to progress its suite of exploration and development projects. This will focus on Tennant Creek but will include allocations to our other projects such as the prospective West Arunta region where a heritage agreement was recently signed to facilitate exploration and approvals for its Yarram iron ore project near Darwin.
CuFe Executive Director Mark Hancock commented “We are pleased to have been able to engage with Northern Star on their plans for Crossroads and this has assisted us in understanding the timing and tonnage potential of the royalty stream.
Having considered the pros and cons of holding the royalty through to commencement of mining operations and possibility receiving additional funds over a longer period of time, we believe the certainty of knowing what we will receive from the deal and being able to plan our work programs accordingly offers the best option for us.
The value of royalty streams is always uncertain when they form part of the consideration for a tenement sale so to receive $4m cash for an asset that was sold more than 10 years ago is a great result for CuFe and its shareholders.
The Tennant Creek area is hot right now and these funds will enable us to increase our focus there as well as on our other prospective projects.”
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