De Grey Mining acquisition announcement

De Grey Mining (ASX:DEG) has announced that Northern Star Resources (ASX:NST) will acquire the company through a recommended scheme of arrangement. De Grey shareholders will receive 0.119 new Northern Star shares for each De Grey share. The acquisition, valued at approximately A$5 billion, includes De Grey's Hemi Project, a significant gold development in Western Australia.

Overview and future outlook for De Grey Mining

De Grey Mining (ASX:DEG) has agreed to be acquired by Northern Star Resources through a share-based transaction. Under the scheme, De Grey shareholders will receive 0.119 Northern Star shares per De Grey share, valuing the offer at A$2.08 per share. This acquisition brings Northern Star the Hemi Project, a substantial gold development in Western Australia, enhancing its portfolio with a low-cost, long-life production center. The deal is poised to increase Northern Star's production to 2.5 million ounces annually by FY29. The De Grey Board fully supports the arrangement, pending necessary approvals and the absence of a superior proposal. The transaction is expected to be finalized by late April or early May 2025, with De Grey's management team retained for seamless integration.

Executive commentary on De Grey acquisition

The De Grey Board unanimously supports the scheme, subject to no superior proposals emerging and positive conclusions from an independent expert.