Mount Gibson Enters Gold Sector with $50M Central Tanami Acquisition

About Mount Gibson Iron Limited

Mount Gibson Iron Limited (ASX: MGX) is an established Australian iron ore producer known for its Koolan Island operations. In a transformative move, the company has announced a conditional agreement to acquire a 50% interest in the Central Tanami Project Joint Venture (CTPJV) from Northern Star Resources Limited, along with adjacent exploration tenements. This acquisition marks Mount Gibson’s formal entry into the gold sector.

Strategic Developments and Project Overview

Mount Gibson Iron Limited has entered into a binding agreement to acquire Northern Star Resources’ 50% stake in the Central Tanami Project Joint Venture (CTPJV) for $50 million. The acquisition also includes Northern Star’s wholly owned exploration tenements, expanding Mount Gibson’s footprint in the Tanami region of the Northern Territory to approximately 5,700 square kilometres. The deal marks Mount Gibson’s entry into the gold sector and reflects a strategic shift toward multi-commodity growth.

Key assets involved in the acquisition include a non-operating 1.2 million tonnes per annum (Mtpa) carbon-in-leach gold processing plant, granted mining leases, and supporting infrastructure such as haul roads, a gravel airstrip, bore fields, and an accommodation camp. These assets position the company to leverage existing facilities and reduce time to production.

Completion of the transaction is subject to standard conditions, including Foreign Investment Review Board (FIRB) approval, land access extensions from the Central Land Council, and Tanami Gold’s non-exercise of its right of first refusal. The transaction is expected to be finalised by 31 March 2026.

The Central Tanami Project hosts JORC 2012-compliant Mineral Resources totalling 13.8 million tonnes at 3.6 grams per tonne (g/t) gold for 1.6 million ounces (Moz). In addition, there are historical JORC 2004 resource estimates of around 1Moz, bringing the total gold inventory to approximately 2.6Moz.

Notable deposits within the project include the high-grade Groundrush deposit (7.7Mt at 4.3g/t Au for 1.1Moz), as well as Ripcord and Jims, which together add another 2.35Mt at roughly 2.2g/t Au for 0.17Moz. The bulk of these resources sit on granted mining leases, supporting near-term development options.

Development Pipeline and Financial Structure

Mount Gibson plans to fast-track feasibility studies across the Groundrush, Ripcord, and Jims deposits, with a development decision targeted within 12 to 18 months. The company will evaluate refurbishment options for the existing processing plant, and drilling campaigns are already underway to extend known mineralisation and convert historical resource estimates to JORC 2012 compliance.

The presence of existing infrastructure, previous technical work, and granted mining leases reduces the lead time to production and aligns well with Mount Gibson’s capabilities in remote operations.

Funding for the acquisition will come from Mount Gibson’s internal cash reserves. The company will also replace approximately $5.8 million in bank guarantees through its performance bonding facility. During the pre-completion period, Northern Star will remain responsible for up to $3 million in project expenditures, with any additional costs covered by Mount Gibson, subject to final adjustment at completion.

Based on the consideration, the acquisition equates to an average cost of $61 per ounce for JORC 2012 resources and $38 per ounce when historical estimates are included—metrics that compare favourably to recent industry transactions.

Strategic Rationale and Outlook

This acquisition is a significant step in Mount Gibson’s diversification strategy, expanding its focus beyond iron ore. The company’s prior experience with remote mining operations, infrastructure management, and permitting will be valuable in accelerating the development of the Central Tanami Project.

Chairman Brett Smith, who also serves as a non-executive director of Tanami Gold, abstained from all Board decisions related to this transaction. Notably, Mount Gibson’s major shareholder, APAC Resources, also holds a 46.3% interest in Tanami Gold, indicating strong alignment between JV partners.

Looking ahead, Mount Gibson expects regulatory approvals to be completed by early 2026. In the meantime, the company will monitor ongoing exploration and work collaboratively with Tanami Gold to advance technical studies. With gold prices remaining robust and the project already well-advanced, Central Tanami is expected to play a key role in Mount Gibson’s evolving asset portfolio.

Further updates will be provided following key regulatory milestones and the outcomes of the 2024–2025 exploration programs.