Northern Star Resources has announced it has officially acquired De Grey Mining as of today.
All De Grey shares have now been transferred to Northern Star, with new Northern Star shares expected to start trading on the ASX tomorrow.
De Grey has now applied for its removal from the official list of the ASX and termination of the official quotation of its shares, which is also expected to commence tomorrow.
Central to Northern Star’s interest in De Grey is the miner’s Hemi gold project in the Pilbara region of Western Australia.
Hemi has a mineral estimate of 11.2 million ounces and the potential to be mined by large scale, low strip ratio, low cost open pit mining.
Studies have found that there is potential for underground mining to run in parallel with open-pit mining, making the project a highly prospective package for Northern Star’s Tier 1 mining portfolio.
“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.
“The Northern Star team looks forward to integrating Hemi into our portfolio and building strong relationships with the Kariyarra people, other Traditional Owners in the Hemi project area and additional Hemi project stakeholders.”
