- Two of the biggest gold miners on the ASX, Northern Star Resources (NST) and Saracen Mineral Holdings (SAR), could soon merge, forming a top-10 global gold producer
- The Saracen board has unanimously recommended its shareholders vote in favour of the merger at a scheme meeting in January
- If approved, Saracen shareholders will receive 0.3763 NST shares for each SAR share held and the merged group will continue trading as Northern Star Resources
- The merger would create a 1.6-million-ounce per annum gold producer, with assets concentrated in three hubs, all in Tier-1 mining jurisdictions
- The proposed board would be made up of five directors from Northern Star and four from Saracen
- NST shares have jumped 6.7 per cent to trade at $14.75, while SAR shares have climbed 6.7 per cent, worth $5.57
Northern Star Resources (NST) and Saracen Mineral Holdings (SAR) have signed a scheme of arrangement for a proposed merger.
The merger of the second and fourth-largest ASX-listed gold producers by market cap would form a top-10 global gold producer with a market cap of approximately $16 billion.
The Saracen board has unanimously recommended its shareholders vote in favour of the merger at a scheme meeting to be convened for January 2021.
If approved, Saracen shareholders will receive 0.3763 NST shares for each SAR share held and the merged group will continue trading as Northern Star Resources.
The merger would create a company producing 1.6 million ounces per annum of gold, targeting two million ounces per annum from the 2027 financial year.
The newly formed producer would uniquely hold assets in tier-1 mining jurisdictions concentrated in three centres: Yandal, Kalgoorlie and North America.
Yandal operations would include Northern Star’s Jundee and Bronzewing projects and Saracen’s Thunderbox.
The Kalgoorlie centre will comprise Saracen’s Carosue Dam, Northern Star’s Kalgoorlie Operations as well as the Kalgoorlie Consolidated Gold Mines (KCGM) operations.
KCGM is a joint venture between Saracen and Northern Star and operates the Kalgoorlie Super Pit, the Mt Charlotte Underground Mine and two processing plants.
The North American production hub comprises Northern Star’s Pogo gold deposit in Alaska.
The board of the merged company would comprise five directors from Northern Star and four from Saracen.
NST shares have jumped 6.7 per cent to trade at $14.75, while SAR shares have climbed 6.7 per cent, worth $5.57 at 12:30 pm AEDT.