Star Minerals signs right-to-mine agreement for Tumblegum South gold project

Star Minerals person entered into a right-to-mine statement with mining contractor MEGA Resources and Bain Global Resources for its Tumblegum South golden task successful Western Australia (WA).

Bain Global Resources, the concern limb of MEGA Resources, holds 9.7% of Star Minerals’ shares and is providing up to A$20m ($13.06m) successful moving superior done MEGA Resources.

Under the agreement, MEGA Resources is granted the mining declaration for the Tumblegum South project, operating nether arms’ length, commercialized terms.

The statement includes a 50:50 nett stock statement betwixt Star Minerals and Bain Global Resources, pursuing the betterment of each costs incurred by some Star Minerals and MEGA Resources.

This backing operation is intended to trim Star Minerals’ dependence connected stock issuances oregon high-risk indebtedness for task finance.

Star Minerals managing manager Ashley Jones said: “This statement is simply a win-win for the parties. Leveraging risk-free moving superior provided by MEGA Resources means little dilution for our shareholders and mitigates currency travel timing issues. Getting currency travel into the institution and alignment with a trusted spouse with the aforesaid goals are cardinal ingredients for palmy economics.”

MEGA Resources, which presently operates 3 golden mines, plans to commence mining astatine Tumblegum South successful the archetypal 4th of 2026 (Q1 2026).

The statement is contingent connected the signing of an ore acquisition statement betwixt Star Minerals and a processing plant, with some MEGA Resources and Star Minerals actively seeking a processing solution.

Star Minerals submitted its mining approvals exertion to the WA Department of Mines, Petroleum and Exploration connected 9 September 2025, and its Native Vegetation Clearing licence exertion connected 14 July 2025.

The right-to-mine statement volition stay successful unit until each ore from the approved excavation program has been processed and each associated profits person been distributed.

The statement whitethorn beryllium extended by communal consent to see further excavation plans.

Standard termination clauses apply, including circumstances specified arsenic insolvency oregon superior default.

Upon expiry oregon termination, MEGA Resources’ exclusive remedy for immoderate unrecovered improvement expenditure is constricted to proceeds from ore stockpiles.

In April this year, Star Minerals signed a memorandum of knowing with MEGA Resources to beforehand the Tumblegum South golden project.

"Star Minerals signs right-to-mine statement for Tumblegum South golden task " was primitively created and published by Mining Technology, a GlobalData owned brand.

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