- Northern Star (ASX:NST) has completed the acquisition of 50 per cent of Kalgoorlie Consolidated Gold Mines
- The company now holds a 50 per cent interest in the Kalgoorlie Super Pit, the biggest open-pit gold mine in Australia
- In addition, the $1145 million (US$800 million) acquisition includes certain assets from Newmont Goldcorp Corporation
- Shares in Northern Star are trading 2.93 per cent higher, $11.60 per share
Northern Star (ASX:NST) has completed the acquisition of 50 per cent of Kalgoorlie Consolidated Gold Mines (KCGM).
The company holds a 50 per cent interest in the Kalgoorlie Super Pit and other assets from Newmont Goldcorp Corporation.
In addition, the ~$1145 million (US$800 million) acquisition was in part funded by a $765 million institutional share placement.
The Super Pit
The Kalgoorlie Super Pit is the biggest open-pit mine in Australia, with an endowment of 80 million ounces of gold.
It has a gold content of approximately 45,000 to 60,000 ounces per vertical metre.
The Super Pit is held by Kalgoorlie Consolidated Gold Mines, was a 50:50 joint venture between Newmont Goldcorp Australia and Saracen Mineral Holdings.
The Acquisition
The acquisition includes all the shares of Kalgoorlie Lake View from Newmont Goldcorp Australia.
Northern Star now holds a 50 per cent interest in the KCGM and in operations and assets managed by KCGM.
The acquisition also includes certain assets from Newmont Goldcorp Australia.
Northern Star Executive Chairman Bill Beament described the new Northern Star-Saracen joint venture as having huge growth potential.
“We look forward to working closely with our highly competent JV partner Saracen, to create value and opportunities for all the project’s stakeholders, including the local community,” he said.
Shares in Northern Star are trading 2.93 per cent higher, to be worth $11.60 apiece at 1pm AEDT.