The cashed-up gold producer has been looking at ways it can boost the milling capacity of its Kalgoorlie operations due to ongoing exploration success.
The acquisition consideration comprises around $20 million cash and $60 million in Northern Star shares.
South Kalgoorlie comprises the 1.2 million tonne per annum Jubilee mill, a 4 million ounce resource, including 250,000oz in reserves, and 800sq.km of tenure.
The mill is currently producing at a rate of 30,000-40,000 ounces of gold per annum, including 24,000oz in the six months to December 31.
The plant has been toll treating ore for third parties.
South Kalgoorlie is 50km from Northern Star’s o...