Northern Star completes purchase of De Grey

The acquisition of De Grey Mining by Northern Star Resources has successfully concluded, amalgamating one of the most significant undeveloped gold projects globally. The accomplishment signals a pivotal moment in the consolidation of gold resources in Western Australia, prompting De Grey to request removal from the ASX, expected to materialize by May 6. Stuart Tonkin, the Managing Director, and CEO of Northern Star, expressed his warm welcome to De Grey’s team and shareholders into the Northern Star family, underpinning the strategic alignment with Northern Star’s mission to deliver exceptional value to its stakeholders.

Emphasizing the strategic significance of this acquisition, Tonkin remarked on the synergies expected to materialize. He anticipates the Hemi project to emerge as a cost-effective, long-term, and large-scale gold mining venture in the premium jurisdiction of Western Australia. The integration of Hemi into Northern Star’s portfolio is a step towards bolstering asset quality and driving cash earnings. Additionally, the prospect of fostering robust relationships with the Kariyarra People, the Indigenous custodians of the Hemi region, and other stakeholders embodies Northern Star’s commitment to sustainable engagement.

The acquisition process culminated in approval by the Federal Court of Australia under the Corporations Act 2001 on April 23. De Grey shareholders have received a scheme consideration equating to 0.119 new Northern Star shares for each De Grey share held, reflecting an implied offer price of $2.08 per share – an impressive 37.1% premium over De Grey’s closing price on November 29, 2024. The new Northern Star shares are set to commence trading on the ASX as of May 6, marking a significant milestone in the unfolding of this transformative acquisition.

Located in the Pilbara region of Western Australia, the Hemi project is poised to yield 530,000 ounces of gold annually in its initial decade of operation. The project presently boasts a resource base of 11.2 million ounces, projecting substantial returns in a flourishing gold market environment. With anticipated record-high gold prices on the horizon, Northern Star is well-positioned to harness the lucrative opportunities presented by the acquisition, propelling it into a competitive stance.

In conclusion, the finalization of the De Grey acquisition signifies a momentous chapter in Northern Star Resources’ journey towards consolidating its presence in the gold mining landscape of Western Australia. The strategic alignment of Hemi with Northern Star’s goals underscores the promise of sustainable growth, operational excellence, and value creation for all stakeholders involved.