Northern Star Resources expands with major acquisition

Northern Star Resources (ASX:NST) has announced a binding agreement to acquire De Grey Mining (DEG) through a scheme of arrangement. This transaction values De Grey at approximately A$5 billion. Shareholders of De Grey will receive 0.119 new Northern Star shares for each De Grey share. The Hemi Gold Project will become a key asset in Northern Star's portfolio, supporting its growth strategy.

Overview of Northern Star's strategic acquisition and future outlook

Northern Star Resources has committed to acquiring De Grey Mining, a move that aligns with its strategy to enhance production and expand its asset base. Post-acquisition, Northern Star aims to achieve a production capacity of 2.5 million ounces per annum by FY29. The Hemi Project, with significant mineral resources and ore reserves, will play a crucial role in this expansion. The acquisition is supported by De Grey's Board and awaits customary approvals. If successful, this will consolidate Northern Star's position as a significant player in the global gold mining industry.

Executive insights on Northern Star's acquisition strategy

The Hemi Project is a low-cost, long-life gold development project in Western Australia, enhancing Northern Star's asset portfolio. Expected to boost Northern Star's gold production to 2.5 million ounces per annum by FY29. The acquisition positions Northern Star in the lower half of the global cost curve.