15. CONTINGENT LIABILITIES
(a) Contingent liabilities The Group had contingent liabilities at 30 June 2017 in respect of:
On 31 July 2015, Northern Star Resources Limited, completed settlement with Tanami Gold NL (“TAM”) to progressively acquire a 60% joint venture interest in the Central Tanami Project (“CTP”).
As part of the acquisition, Northern Star has granted TAM two put options to sell the remaining 40% interest in the CTP following completion. The first put option will grant TAM the right to sell 15% of CTP for A$20 million in cash or Northern Star shares at TAM’s election, at any time from completion up until three years after the completion of the initial acquisition.
If commercial production is achieved more than three years after completion, TAM may exercise this option at any time up to 30 calendar days following achievement of Commercial Production. The second put option will grant TAM the right to sell 25% of CTP for A$32 million in cash or Northern Star shares at TAM’s election at any time from completion up to six calendar months after the achievement of commercial production.
The total undiscounted amount of payments that the Group could be required to make to TAM upon the exercise of the two put options is A$52 million.
The Board refers to previous Announcements and to the general meeting of shareholders on 13th April, 2015, at which the Tanami shareholders approved the Heads of Agreement. The Board wishes to announce that the conditions precedent to the Heads of Agreement have now been satisfied and Completion has therefore occurred.
