Northern Star Resources Limited
(ASX:NST) is set to become the second largest listed gold miner on the ASX the company announced today.
Northern Star has agreed pay Newmont Mining $82.5 million in cash for the historic Jundee Gold Mine in Western Australia in a deal which will lift Northern Star’s expected production from 350,000ozpa to 550,000ozpa in 2015.
The purchase comes on the back of recent acquisitions of the Plutonic, Ka-now-na Belle and and Ku-dana gold mines in WA for $100million.
The Jundee purchase has been funded by cash reserves and an increased debt facility and is expected to immediately increase the company’s cash flow.
With five operating gold mines, Northern Star Resources becomes far more attractive to global investors and the company plans to maximise economies of scale and keep costs as conservative as possible.
Northern Star Resources posted a net profit of $7.6 million for the half year ended December 31, 2013
