- Northern Star Resources (NST) will not buy an interest in the Windfall Project or create a joint venture with Osisko, following negotiations
- Last year, the parties announced a potential agreement for Northern Star to earn a 50 per cent interest in the Windfall Gold Project, through a $169 million convertible senior unsecured debenture
- However, following due diligence, the parties could not agree on acceptable terms
- Northern Star Managing Director has wished Osisko well in the development of the project
- On the market, Northern Star is up 3.21 per cent and trading at $9.33 per share
Following negotiations, Northern Star Resources (NST) will not buy an interest in the Windfall Project or create a joint venture with Osisko.
In December, the parties announced a potential agreement where NST will hand over $169 million to Osisko via a convertible senior unsecured debenture.
In return for the funding, Northern Star will be able to earn a 50 per cent interest in the Canadian company’s Windfall Gold Project.
According to Northern Star, the companies could not agree on acceptable terms.
“Following extensive due diligence, Northern Star was unable to agree mutually acceptable terms with Osisko. Northern Star appreciates the opportunity and professional co-operation provided by Osisko for Northern Star to evaluate the Windfall Project,” Managing Director Stuart Tonkin said.
“Northern Star is disciplined in its review of acquisition opportunities with superior shareholder returns being its first priority. We continue to view the Windfall project in an extremely positive light and wish Osisko well in its development of Windfall.”
The company continues to hold the Debenture maturing on December 1, 2025, with an interest rate of 4.75 per cent per annum.
On the market, Northern Star was up 3.98 per cent and is trading at $9.40 per share at 2:30 pm AEDT.