Northern Star Resources has officially completed its acquisition of De Grey Mining, bringing one of the world’s largest undeveloped gold projects into the fold.
The completion marks a major milestone in the consolidation of gold assets in Western Australia, with De Grey applying for its removal from the ASX. The delisting is anticipated to take effect at the close of trading on May 6.
“On behalf of everyone at Northern Star, I welcome De Grey’s team and its shareholders to our company,” Northern Star managing director and chief executive officer Stuart Tonkin said.
“The acquisition of De Grey is strongly aligned with Northern Star’s strategy to generate superior returns for shareholders.
“We believe that Hemi will deliver a low-cost, long-life and large-scale gold mine in the Tier-1 jurisdiction of Western Australia, further enhancing the quality of our asset portfolio and ability to generate cash earnings.”
Tonkin said the Northern Star team looks forward to integrating Hemi into its portfolio and building strong relationships with the Kariyarra People, the Traditional Owners of the land in which Hemi is situated, and additional stakeholders.
On April 23, the acquisition was approved by the Federal Court of Australia under the Corporations Act 2001.
De Grey shareholders have now received the scheme consideration of 0.119 new Northern Star shares for each De Grey share held as of the record date, equating to an implied offer price of $2.08 per share – a 37.1 per cent premium on De Grey’s November 29 2024, with a closing price of $1.52.
The new Northern Star shares are expected to begin trading on the ASX on a normal settlement basis from May 6.
Hemi is located in the Pilbara region of WA and is forecast to produce 530,000 ounces of gold per annum over its first 10 years. It currently hosts a resource of 11.2 million ounces.
With gold prices projected to reach further record prices, this acquisition places Northern Star in a strong position to take advantage.
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