Northern Mining sells gold project to Metals X

Local miner Metals X has reached an agreement with Northern Mining to acquire the Georges Reward gold project at Bulong in Western Australia for a cash sum of $4.5 million.

The tenement is understood to have 22,500 ounces of gold, and is 79 per cent owned by Northern Mining and 21 per cent owned by Balagundi Gold under a joint venture agreement.

The Georges Reward project is contiguous with Metal X’s Cannon project of Southern Gold, which Metals X has a contract management and profit sharing agreement from the mining of the deposit which is due to commence in the coming months.

This comes after the Peter Cook-led Metals X missed out to Northern Star Resources on an $11 million acquisition of Tanami Gold in April this year.

Northern Mining said the sale was a strong option as it would de-risk the project from uncertainties due to boundary constraints with a neighbouring tenement.

At 1:30pm, Metal X’s shares fell 0.3 per cent to $1.30, while Northern Mining’s share price gained 4 per cent to be at 0.2 cents.