Northern Star Resources has signed a new deal with Intrepid Mines for Paulsens Gold Mine after renegotiating the offer to $40 million, an increase of $13 million.

A previous agreement was cast aside to indicate the altered macro and micro conditions since the agreement was made and some additional benefits that would be credited with Northern Star from an increased A$ gold price and widened mine plans on the cash flow of the project.

The price of gold has risen by around A$200 per ounce and a re-examination of the mine plans in June has resulted in a primary increase in projected gold production for the next nine months beginning June 1, 2010.

These new findings are now projected to produce an additional $19 million to cash flow surplus in this quarter, upping the sum to $44 million.

The updated plan for Stage 1 of operations in Paulsens Mine has revealed that gold production next nine months beginning June 1, 2010 will have 8,000oz more than the original projection of 51,000oz.

The new deal takes into account the improvement in macro and micro conditions thus ensuring that the shareholders of Intrepid also benefit from the cash flow increase.

Intrepid Mines' Board has unanimously accepted the updated offer of Northern Star. Finalization of the transaction between the two mining companies is scheduled at the end of July this year.