Nexus Minerals has acquired Northern Star’s remaining 10% stake in the Pinnacles Gold Project, boosting its ownership to 100% and ending the joint venture. The deal includes a 1.5% net smelter return royalty payable to Northern Star, with an option to buy back part of it.
- Nexus acquires remaining 10% of Pinnacles Gold Project
- 1.5% net smelter return royalty payable to Northern Star
- Option to buy back 0.5% royalty for $550,000
- Pinnacles hosts 78,000oz gold resource with granted mining lease
- Completion subject to legacy royalty and ministerial approvals
Nexus Takes Full Control of Pinnacles Gold Project
Nexus Minerals Limited (ASX:NXM) has moved to consolidate its position in the Eastern Goldfields by acquiring the remaining 10% interest in the Pinnacles Gold Project from Northern Star Resources. This transaction elevates Nexus to 100% ownership, ending the joint venture arrangement and giving the company sole control over the project located 100km northeast of Kalgoorlie in Western Australia.
The acquisition is structured around a 1.5% net smelter return (NSR) royalty payable to Northern Star, with Nexus retaining the right to buy back half of this royalty for $550,000 at any time. The deal is expected to complete by 30 September 2026, pending satisfaction of conditions including clearance of legacy royalty agreements and ministerial consent. Completion will follow five days after all conditions are met or waived.
Project Resource and Development Status
The Pinnacles Gold Project boasts a JORC 2012 combined mineral resource estimate of 609,000 tonnes at 4.0 grams per tonne gold, equating to approximately 78,000 ounces. Of this, the underground resource alone accounts for 66,000 ounces at 4.6 grams per tonne. The project benefits from a granted mining lease and environmental approvals, including flora and fauna surveys and a native vegetation clearing permit valid until November 2030.
Metallurgical test work indicates gold recoveries around 97%, supporting the project's development potential. While no Ore Reserves have yet been defined, Nexus is preparing a mine development and closure plan to be submitted after the transaction concludes. The company is evaluating underground mine development options as part of its forward planning.
Strategic Implications for Nexus Minerals
Securing full ownership of Pinnacles aligns with Nexus's broader strategy to consolidate and develop its gold assets in the Eastern Goldfields. The project sits immediately south of Northern Star’s Carosue Dam Operations, positioning Nexus to leverage regional infrastructure and geological continuity. Nexus’s extensive land package in the region includes the Wallbrook Gold Project to the north, where recent drilling has confirmed high-grade gold continuity and resource expansion potential.
The company is also expanding its footprint beyond Western Australia, holding granted tenure over 7,500 square kilometres of prospective gold, copper, and critical minerals in New South Wales, as well as the Bethanga Porphyry Copper-Gold project in Victoria. Nexus is actively investing in advanced exploration techniques to refine targeting across its portfolio.
Completion of the Pinnacles acquisition and subsequent development plans will be key milestones to watch, particularly given the conditions precedent tied to legacy royalties and regulatory approvals. The royalty structure introduces a modest ongoing cost but preserves Nexus’s ability to regain a larger share of future returns through the buyback option.
Bottom Line?
Nexus’s full ownership of Pinnacles removes joint venture complexities, setting the stage for focused development, but regulatory and legacy royalty approvals remain critical hurdles.
Questions in the middle?
- How swiftly will regulatory and legacy royalty conditions be cleared to finalise the acquisition?
- What timeline and capital expenditure will Nexus outline in its forthcoming mine development plan?
- Could the royalty buyback option influence Nexus’s long-term financial strategy for Pinnacles?