Northern Star's strategic acquisition of De Grey

Northern Star Resources (ASX:NST) has announced a proposed acquisition of De Grey Mining through a scheme of arrangement. The transaction, valued at approximately A$5.0 billion, involves an all-scrip offer. De Grey shareholders will receive 0.119 new Northern Star shares for each De Grey share. This acquisition aims to enhance Northern Star's portfolio with the integration of De Grey's Hemi gold project.

Outlook and impact of Northern Star's acquisition

Northern Star Resources' acquisition of De Grey Mining is a pivotal strategic step, projected to enhance the company's production capabilities and portfolio strength. The integration of the Hemi gold project is expected to contribute significantly to Northern Star's production ambitions, targeting approximately 2.5 million ounces per annum by FY29. The all-scrip deal maintains Northern Star's financial flexibility, with De Grey shareholders holding a 19.9% stake in the combined entity. The acquisition underscores Northern Star's strategy to grow in a stable and resource-rich environment, with Hemi offering substantial geological potential and ESG credentials. The scheme is anticipated to be implemented by early May 2025, following necessary approvals.

Executive insights on Northern Star's acquisition

The transaction is subject to court and De Grey shareholder approvals and has been unanimously recommended by De Grey's Board of Directors. Hemi's integration will enhance Northern Star’s asset portfolio, positioning it as a global leader in gold production. Northern Star brings extensive exploration, development, and operational expertise to optimize the Hemi project.