Northern Star Exits Egina JV; Novo Regains Full Project Control

Northern Star Exits Egina JV, Novo Regains Full Control

In a surprising development, Northern Star Resources Ltd (ASX:NST) has decided to withdraw from its earn-in and joint venture agreement with Novo Resources (ASX:NVO) over the Egina Gold Project in Western Australia's Pilbara region. This move means the Egina Joint Venture will not be formed, with all exploration activities and data reverting back to Novo.

Despite Northern Star's exit, Novo retains all exploration data gathered during Northern Star’s tenure, providing a valuable foundation for reassessing the project's potential. Novo’s Executive Co-Chairman and Acting CEO Mike Spreadborough emphasised the strategic importance of Egina, located just 30 kilometres from Northern Star’s prolific Hemi Gold Project, which boasts over 13.6 million ounces of gold reserves. Spreadborough described Egina as an “outstanding asset” and confirmed plans to recommence exploration activities in the second half of 2026.

Egina Project and Regional Significance

The Egina Gold Project covers multiple high-priority prospects within the Mallina Basin, including the Becher Prospect, which spans approximately 20 square kilometres. The region is known for its structurally complex gold corridors, with shallow cover masking significant exploration targets. Northern Star’s withdrawal leaves Novo as the sole operator, tasked with unlocking the potential of this underexplored belt.

While the Egina JV dissolves, Northern Star will continue its involvement in the Farno McMahon joint venture with Novo, holding a 75% interest. This ongoing partnership suggests Northern Star remains committed to the Pilbara region, albeit with a more focused portfolio.

Ongoing and Upcoming Drilling Campaigns

Novo is pressing ahead with its broader Pilbara exploration program. A recent reverse circulation (RC) drilling campaign at the Wyloo SE Prospect has been completed, with 2,628 metres drilled across 16 holes. Samples are currently en route to ALS Laboratories for analysis. The drilling rig is now relocating to the Cronus Prospect, situated 23 kilometres southeast of Karratha, where drilling is scheduled to commence imminently.

Looking ahead, heritage surveys are planned for the Teichman project in Q3 2026 to clear the way for further RC drilling. These activities build on Novo’s aggressive exploration strategy, supported by a recent capital raise that has bolstered its capacity to advance multiple projects simultaneously. This momentum follows the company’s earlier announcements of expanded drilling programs across its Pilbara assets, including Belltopper and Wyloo, as outlined in recent coverage of Novo’s Pilbara drilling plans and Wyloo Antimony drilling launch.

Shareholding Changes and Strategic Implications

The announcement also revealed shifts in Novo’s shareholder base. IMC Resources Gold Holdings Pte Ltd has reduced its stake below the 5% substantial holder threshold following Novo’s March capital raising. Similarly, Northern Star’s holding has dropped below 10%, removing its status as a significant shareholder and reporting insider. These changes could influence Novo’s corporate dynamics and strategic partnerships going forward.

While the immediate financial impact of Northern Star’s withdrawal from Egina remains unclear, Novo’s commitment to methodical exploration and asset growth signals a determination to unlock value independently. The company’s diversified Pilbara portfolio and ongoing drilling campaigns position it to maintain momentum despite the JV setback.