SYDNEY: Northern Star Resources Ltd and De Grey Mining Ltd have agreed to merge in a deal valued at approximately $5 billion.
Under this arrangement, Northern Star will acquire all shares of De Grey, including its flagship Hemi gold project in Western Australia.
Hemi is one of the largest undeveloped gold projects globally, with significant mineral resources and ore reserves. The project is expected to produce an average of 530,000 ounces of gold annually over its first ten years.
De Grey shareholders will receive 0.119 new Northern Star shares for each De Grey share, valuing De Grey shares at A$2.08 each, which represents a 37.1% premium to their last closing price.
Upon completion, Northern Star shareholders will own about 80.1% of the combined group, while De Grey shareholders will own the remaining 19.9%.
Both companies’ boards have unanimously recommended the deal, which is subject to approval by De Grey shareholders and regulatory authorities.
Northern Star’s CEO, Stuart Tonkin, emphasized that the acquisition aligns with the company’s strategy and will enhance its asset portfolio.
De Grey’s Managing Director, Glenn Jardine, highlighted the attractive opportunity for shareholders and the potential for continued growth.