TANAMI GOLD NL

28 February 2019

ANNOUNCEMENT - COMPANY UPDATE

The Board of Directors of Tanami Gold NL ('the Company') wishes to update Shareholders in relation to the Company's joint venture ("JV") formed under the Heads of Agreement ("HoA") with Northern Star Resources Limited ("NST") and Northern Star (Tanami) Pty Ltd ("Northern Star") dated 25 February 2015, concerning the Central Tanami Project ("CTP").

In accordance with the terms of the HoA, Northern Star is the manager of all JV activities and is required to 'sole fund' all JV expenditure during the period up until the commencement of commercial production ("Sole Funding Period"). JV expenditure includes all costs in connection with the activities of the JV, including:

  • • management, exploration, evaluation, assessment, development and mining of the JV tenements; and

  • • refurbishing the CTP processing plant and associated infrastructure.

As previously announced by the Company, Northern Star has not achieved "Commercial Production", which Northern Star has agreed to use best endeavours to do on the terms set out in the HoA, including within 3 years of completion of the HoA. Given the Sole Funding Period has yet to expire, the Company is not currently required to contribute any funds towards the CTP or JV activities. Northern Star is currently required to carry the entire expenditure obligations of the CTP pursuant to the JV sole funding arrangements.

The Company remains focused on the exploration, assessment and long-term development of the CTP and is currently in discussions with NST regarding achieving the objectives of the HoA.

NST has confirmed 1that CTP economic evaluation remains ongoing, and that in its ten year production profile the CTP remains a potential organic growth option for 2020/2021, assuming conversion of existing and any additional Mineral Resources to Ore Reserves to sustain economic parameters for refurbishment of the CTP plant.

The Company will advise Shareholders further as to the outcome of the current discussions with NST.

Arthur Dew

Chairman

1 Refer to ASX announcements released by Northern Star Resources Limited on 3 August 2017 "Reserve & Resource Update and Corporate Outlook", and on 3 August 2018 "Corporate Strategy Day - August 2018".

Attachments

  • Original document
  • Permalink

Disclaimer

Tanami Gold NL published this content on 28 February 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 27 February 2019 22:19:08 UTC