Tumblegum South Gold Project Right-to-Mine Agreement

Star Minerals Advances Tumblegum South Gold Project with New Agreement

Star Minerals drives fresh momentum at the Tumblegum South gold project after securing a right-to-mine agreement with MEGA Resources and Bain Global Resources. The company aims to accelerate development in Western Australia while reducing reliance on equity dilution and high-risk debt. The agreement gives MEGA Resources the mining contract under strict commercial terms, ensuring clear accountability and aligned operational goals.

MEGA Resources and its finance arm, Bain Global Resources, now play dual roles in the project. Bain holds 9.7% of Star Minerals and provides up to A$20m in working capital. This structure gives Star Minerals access to risk-free development funds, which improves liquidity and supports timely project execution. Managing director Ashley Jones states that the arrangement strengthens cash flow, aligns partner incentives, and supports long-term project economics.

Meanwhile, MEGA Resources plans to begin mining operations in Q1 2026, subject to final approvals. Star Minerals already lodged its mining approvals application with the WA Department of Mines, Petroleum and Exploration in September 2025 and submitted its Native Vegetation Clearing permit earlier in July. Both partners are now advancing discussions for an ore purchase agreement to secure a processing path for the Tumblegum South gold project, which remains essential for project start-up.

Profit-Sharing Framework Strengthens Tumblegum South Gold Project Economics

The agreement introduces a 50:50 profit split between Star Minerals and Bain Global Resources, triggered once both parties recover their project-related costs. This model creates transparent economic outcomes and simplifies financial planning for the Tumblegum South gold project. The contract remains active until both sides process all ore from the approved mine plan and distribute associated profits.

The parties designed the agreement for scalability. They may extend the contract by mutual consent to include additional mine plans if new opportunities emerge. Standard termination clauses apply, including scenarios involving insolvency or serious performance issues. MEGA Resources limits its remedy for unrecovered expenditure to proceeds from ore stockpiles, which reduces legal complexity and preserves operational clarity.

In April, Star Minerals and MEGA Resources signed an initial memorandum of understanding. This new deal now formalizes their operational partnership and supports a clear pathway toward commercial production.

SuperMetalPrice Commentary:

Star Minerals strengthens its strategic position with a funding structure that many emerging miners now seek. The risk-free capital from MEGA Resources reduces dilution and creates a more secure development runway. If the partners secure a processing agreement soon, the Tumblegum South project could move into a high-visibility development window during 2026. Investors should monitor permitting progress and processing plant negotiations, as both elements will decide the project’s near-term economic impact.