Great Southern Mining Secures A$4M Upfront in Southern Star Licence Sale to Regis

Strategic Sale Unlocks Capital for Great Southern Mining

Great Southern Mining Limited (ASX, GSN) has agreed to sell Mining Licence M38/1299, which hosts the Southern Star gold prospect, to Regis Resources Ltd (ASX, RRL) for up to A$9 million. The deal includes an immediate A$4 million cash payment, with further contingent payments of up to A$5 million based on gold price thresholds and the discovery of additional economic mineralisation.

This transaction provides Great Southern Mining with a significant capital injection to fund aggressive exploration across its remaining 421 square kilometres of tenure in the highly prospective Duketon Gold Project. Southern Star’s proximity, just 3.5 kilometres south of Regis’ Ben Hur open pit mine, makes it a strategic fit for Regis, which is well positioned to develop the prospect in the near term.

Contingent Payments Align Interests with Gold Market Dynamics

The payment structure is designed to reflect the evolving value of the asset. Following the upfront A$4 million, Regis will pay up to A$3 million contingent on the average gold price at the start of mining, with thresholds set between A$4,000 and A$5,000 per ounce. An additional A$2 million is payable upon declaration of a JORC Ore Reserve exceeding 150,000 ounces of gold. Notably, the current 30-day average gold price in Australian dollars is above A$5,000 per ounce, suggesting the potential for maximum contingent payments.

Great Southern Mining also retains a right of first offer on defined JORC Mineral Resources up to one million ounces gold equivalent within its remaining Duketon tenure, ensuring ongoing strategic options with Regis.

A Collaborative Approach to Accelerate Discovery

Beyond the financial terms, the two companies have entered a strategic data sharing alliance aimed at fast-tracking new discoveries across the Duketon Greenstone Belt. This collaboration leverages Regis’ substantial processing infrastructure and exploration expertise alongside Great Southern Mining’s extensive landholdings, which include granted exploration licences and applications covering over 850 square kilometres.

Great Southern Mining’s Managing Director, Matthew Keane, highlighted the mutual benefits, “This transaction delivers a strong capital boost to fund exploration while positioning Regis to develop Southern Star. It creates immediate value and sets the stage for new discoveries in the Duketon Belt.”

With Regis having delineated over 10 million ounces of gold mineral resources in the region, the alliance could unlock significant upside potential for both parties as they explore the three primary mineralised corridors extending into GSN’s tenure.