Great Southern Mining Sells Southern Star Gold Prospect to Regis Resources for up to $9m

Great Southern Mining (ASX: GSN) has made a strategic decision to sell the Southern Star gold prospect to Regis Resources (ASX: RRL) for a potential consideration of $9 million.

The sale will earn Great Southern a $4 million upfront cash payment and contingent payments of as much as $5 million based on gold price thresholds and the discovery of further economic mineralisation.

The two companies have also agreed to form a strategic data-sharing alliance aimed at fast-tracking new discoveries across the Duketon greenstone belt.

Mutually Beneficial

“This transaction is beneficial for both Great Southern and Regis—it delivers a strong capital boost to fund aggressive exploration across our highly prospective Duketon tenure, most of which remains underexplored,” Great Southern managing director Matthew Keane said.

“Meanwhile, Regis is perfectly positioned to leverage the near-term development upside from Southern Star; it’s a deal that creates immediate value and sets the stage for new discoveries in the Duketon belt.”

Regis is building a strong position in the Duketon Belt where it owns around 10 million tonnes of installed processing infrastructure and has been successful in identifying approximately 10 million ounces of gold resources.

Southern Star is located 3.5 kilometres south of Regis’ Ben Hur open pit, providing an opportunity for near-term development.

Development Upside

The strategic alliance provides both companies with significant upside as they believe that the three primary mineralised corridors in the belt continue into Great Southern’s tenure.

Regis’ move to acquire Southern Star comes on the back of a strong performance for the company for the quarter ended 30 June 2025.

Releasing its quarterly numbers for the period today, Regis reported it had taken its total FY25 gold production to 373,000 ounces, with $150 million in cash and bullion brought in for the quarter.

Additional Ounces

“The team has done an excellent job executing to plan while also identifying and producing additional opportunistic ounces and, with gold prices expected to remain strong, we see this trend continuing,” Regis chief executive officer Jim Beyer said.

“This solid operational performance, combined with the supportive gold price environment, has strengthened our financial position over the year [and] we expect this performance trend to continue.”

“Regis continues to build on its very strong position by reinvesting into both low-risk growth and opportunistic production, all the while growing balance sheet strength and long-term optionality.”