MGX Resources has completed its $50 million acquisition of a 50% stake in the Central Tanami Gold Project, positioning itself for a major push in one of Australia's highest-grade gold ventures.
- Acquisition of 50% interest in Central Tanami Gold Project from Northern Star Resources
- $50 million cash payment completed ahead of schedule
- Joint venture with Tanami Gold NL and engagement with Traditional Owners
- Project holds approximately 2.8 million ounces of gold resources
- MGX gains 3,600 square kilometres of additional exploration tenure
MGX Finalises Strategic Acquisition
MGX Resources Limited has officially completed the acquisition of a 50% interest in the Central Tanami Gold Project Joint Venture (CTPJV) from Northern Star Resources. The transaction, which involved a $50 million cash payment, was finalised ahead of schedule, marking a significant milestone for MGX as it expands its footprint in the Australian gold mining sector.
The Central Tanami project, located in the Northern Territory, is recognised as one of the country's highest-grade undeveloped gold assets. With an estimated 2.8 million ounces of contained gold across 31 million tonnes of mineral resources, the project offers substantial potential. The core Groundrush deposit alone accounts for 1.2 million ounces at a grade of 3.3 grams per tonne, underscoring the quality of the resource MGX now co-owns.
Collaborative Development and Local Engagement
MGX will partner with Tanami Gold NL, the other joint venture participant, to define the development pathway and accelerate project activities. CEO Peter Kerr emphasised the importance of collaboration, including with the Central Land Council representing the Traditional Owners, highlighting the company's commitment to responsible development and community engagement.
Near-term plans focus on refining the development strategy, securing necessary approvals, and advancing exploration and construction activities. The acquisition also includes 3,600 square kilometres of wholly-owned exploration tenure surrounding the joint venture area, offering MGX additional opportunities to expand its resource base in the Central Tanami region.
Financial and Strategic Implications
The $50 million purchase consideration has been paid in full, with some completion adjustments related to pre-acquisition expenditures and working capital expected to be settled in due course. MGX has also replaced existing bank guarantees totalling approximately $5.8 million, reflecting the financial commitments associated with the project.
This acquisition represents a transformational step for MGX, positioning the company to capitalise on a favourable gold price environment and build a long-life Australian gold business. While detailed timelines and capital expenditure plans remain forthcoming, the move signals MGX’s intent to become a significant player in the region’s mining landscape.
Bottom Line?
MGX’s bold acquisition sets the stage for a new chapter in Australian gold mining, with development progress and partnership dynamics now in focus.
Questions in the middle?
- What is the detailed timeline and capital expenditure plan for developing the Central Tanami project?
- How will MGX and Tanami Gold NL manage operational responsibilities and decision-making within the joint venture?
- What impact will completion adjustments have on the final acquisition cost and MGX’s financial position?