PolarX Shareholders Face Key Vote as Northern Star Eyes Majority in Alaska Project
PolarX Limited has struck a significant joint venture deal with Northern Star Resources, enabling the gold producer to earn up to a 70% interest in the Alaska Range Project through staged investments totaling US$39 million. This partnership aims to accelerate exploration and resource expansion at key copper and gold deposits in Alaska.
- Northern Star may earn up to 70% interest via US$39M staged earn-in
- Joint venture targets expansion of Caribou Dome and Zackly copper/gold resources
- PolarX retains 100% ownership of Humboldt Range Gold Project in Nevada
- JV requires PolarX shareholder approval expected in October 2025
- 2024 Scoping Study projects A$625M NPV and 73.9% IRR for Alaska Range Project
Strategic Partnership Formation
PolarX Limited (ASX – PXX) has formalised a joint venture agreement with Northern Star Resources Ltd, Australia’s largest ASX-listed gold producer, to accelerate development of PolarX’s Alaska Range Project. Under the deal, Northern Star can earn up to a 70% interest by contributing staged cash payments totaling US$39 million (approximately A$60 million), subject to shareholder approval.
This partnership leverages Northern Star’s operational expertise, particularly in Alaska where it runs the high-grade Pogo Gold Mine, alongside PolarX’s extensive exploration assets. The JV aims to fast-track exploration and resource expansion at the Caribou Dome and Zackly copper-gold deposits, both of which boast significant mineralisation and remain open for further discovery.
Earn-In Structure and Funding Details
The earn-in is structured in two stages over five years. Stage 1 requires Northern Star to invest US$19 million by March 2027 to earn up to a 50% stake, with an initial US$5 million payment due shortly after shareholder approval. This initial payment is net of a previous US$2 million loan Northern Star provided to PolarX. Stage 2 offers Northern Star the option to increase its interest to 70% by contributing a further US$20 million by March 2029, contingent on Stage 1 results.
PolarX will manage the joint venture initially, with Northern Star’s technical team providing support. Governance arrangements allow Northern Star to appoint directors once it reaches a 15% stake, with equal board representation at 50% ownership. Key decisions, including a potential mining decision, require supermajority approval, ensuring both parties maintain significant control.
Project Potential and Economic Outlook
The Alaska Range Project encompasses the Caribou Dome, Senator, and Stellar projects, located about 250 kilometres northeast of Anchorage. Caribou Dome alone hosts a mineral resource of 7.2 million tonnes at 3.1% copper and 6.5 grams per tonne silver, with mineralisation open at depth. The Zackly deposit adds further copper-gold-silver skarn mineralisation potential.
A 2024 scoping study highlighted the project’s robust economics, estimating a pre-tax net present value of A$625 million and an internal rate of return of 73.9%, based on conservative copper and gold price assumptions. These figures underscore the project’s potential to become a significant contributor to both companies’ growth strategies.
PolarX’s Broader Exploration Strategy
While the JV focuses on Alaska, PolarX retains full ownership of its Humboldt Range Gold Project in Nevada, with exploration activities planned for late 2025. This diversification maintains PolarX’s exposure to multiple high-potential jurisdictions and commodity types, balancing the company’s portfolio as it advances its flagship Alaska assets with Northern Star’s backing.
Shareholder approval for the JV is anticipated in October 2025, a critical milestone that will unlock the planned funding and exploration acceleration. The market will be watching closely to see how this partnership unfolds and whether it can deliver on the promising resource expansion potential.
Bottom Line?
PolarX’s partnership with Northern Star marks a pivotal step towards unlocking the Alaska Range Project’s value, but success hinges on shareholder approval and exploration outcomes.
Questions in the middle?
- Will PolarX shareholders approve the joint venture at the upcoming meeting?
- How will exploration results from the initial US$19M earn-in phase impact Northern Star’s decision to proceed with Stage 2?
- What are the potential timelines and capital requirements for advancing the Alaska Range Project to production?