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Northern Star signs deal to sell WA mine

AAP logoAAP 14/08/2016

Northern Star Resources will pay shareholders a special dividend of three cents a share once the sale of its Plutonic gold mine in WA to Canada's Billabong Gold for up to $66.2 million is completed.

The gold miner earlier in August trimmed its full-year production guidance after agreeing to sell Plutonic - one of the five mines it owns in WA - as part of efforts to consolidate the business.

As part of the deal, it will receive an initial $12.5 million in cash, followed by royalty and milestone payments of $10 million each. It will also get $25 million in cash later or, if the Canadian entity's parent lists on the Toronto Stock Exchange within six months of the deal, either $25 million or a 33 per cent stake in Billabong's parent companyl.

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