A new strategic alliance launches gold mining at Tumblegum South, with financial and operational support guaranteed. Star Minerals Limited has entered into a Right to Mine Agreement with MEGA Resources and Bain Global Resources to commence mining at the Tumblegum South gold project, with financial support guaranteed. Tumblegum South Tumblegum South gold project located in Western Australia.
This agreement grants MEGA Resources the integral execution of the extraction activities, including drilling, ore transportation and operational management.
Financing without shareholder dilution
Bain Global Resources, through MEGA Resources, will contribute up to A$20 million to the A$20 million in working capital in working capital to initiate the operation. This structure prevents Star Minerals from resorting to equity or debt option issues that would compromise its current financial structure.
The agreement provides for a 50% profit sharing between Star Minerals and Bain Global Resources, after development costs are covered. MEGA Resources will also assume health, safety and environmental regulatory obligations and site rehabilitation.
Gold mining projection for 2026
With three active mines in Australia, MEGA Resources has the infrastructure and experience to commence operations in the first quarter of 2026. The plan calls for mining from the north and south pits of the deposit, with sale or processing of the ore at off-site plants under contract.
The application for mining approval was lodged with the Western Australian Department of Mines, Petroleum and Energy in September 2025. In addition, native vegetation clearance is in the pipeline. The last step before mining commences is the signing of a purchase agreement with a processing plant.
Economic perspective of the project
According to company estimates, Tumblegum South could generate between 11,800 and 15,900 ounces of gold, with a favorable economic return even under different gold price scenarios. Projected operating surplus is up to A$19.6 million, net of operating costs.
The alliance allows Star Minerals to move toward its first significant cash flow, positioning itself as a new gold producer in the in the Australian market.
Source and photo: Star Minerals
