An effort to acquire the 49 percent of the East Kundana joint venture it does not already own has gone south for Northern Star Resources (ASX:NST) after cash offers to Tribune Resources (ASX:TBR) and Rand Mining (ASX:RND) were both rejected.

The joint venture at the center of the situation, East Kundana, is an operational underground gold project located in Western Australia’s Eastern Goldfields region.

While Northern Star currently holds majority ownership of the project at 51 percent, Rand and Tribune hold the remaining interests in the project at 12.25 percent and 36.75 percent, respectively.

In mid-November, Northern Star announced it had put forth a AU$150-million offer to the companies for their shares of East Kundana; AU$112.5 million was offered to Tribune, and AU$37.5 million to Rand.

At the time of the statement, Northern Star Executive Chairman Bill Beament said it was an “outstanding opportunity” for shareholders of both companies.

“The cash offer to acquire the assets is a direct and clear means for Tribune and Rand shareholders to unlock the value of their company’s interests,” Beament said.

“This combination of factors makes our offers a far simpler and more transparent opportunity for Tribune and Rand shareholders than alternative pathways,” he added.

However, in separate statements on Monday (December 31), both companies rejected their respective offers on the basis that they “significantly undervalued” their interests in the joint venture.

Northern Star subsequently released its own statement acknowledging the rejections, reaffirming its stance that the offer is a “fair and sensible pathway” for shareholders of the two companies.

Tribune and Rand have held their cumulative 49-percent stake in the East Kundana joint venture since its establishment in 2002. At the time, Barrick Gold (TSX:ABX,NYSE:ABX) held majority ownership, but its interest in the joint venture was acquired by Northern Star in March 2014.

Monday saw Tribune and Rand close slightly up, with the former at AU$4.02 and the latter at AU$2.01.

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Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.