SUBIACO: Star Resources has agreed with Newmont Goldcorp Corporation’s Australian subsidiary to acquire 50 percent of the Kalgoorlie Super Pit gold mine for US$775 million and additional associated assets for US$25 million, taking the total consideration to US$800 million.
The acquisition will generate a host of substantial benefits for Northern Star shareholders.
The acquisition also includes a separate parcel of nearby tenements 100 per cent owned by Newmont and a transition services arrangement to ensure a smooth transfer of the asset into Northern Star’s portfolio.
Also, part of the transaction Northern Star has been granted an option to acquire Newmont’s 100 per cent-owned power assets, which supply power to KCGM. Under the terms of the option arrangement, Northern Star has an exclusivity period to conduct due diligence and finalise a transaction with Newmont.
The US$25 million option fee will be credited against any price agreed or, if Northern Star elects not to proceed, will be refunded when Newmont sells Newmont Power to a third party.
Northern Star Executive Chairman Bill Beament said the acquisition would create substantial value and provide enormous short, medium and long term opportunities. “The purchase of a 50 percent stake in the Kalgoorlie Super Pit meets our key strategic objectives of generating strong financial returns and growing our gold inventoryfromTier-1 mines inTier-1 locations,” Mr Beament said.