Sunday, 26 January 2014

Junior Gold Mining M&A - Northern Star to 350k oz with Barrick's Kanowna Bell Mine

Following on from their acquisition of Barrick's Plutonic Mine in Australia they have now announced a further Barrick Mine acquisition at Kanowna along with exploration and development potential at East Kundana JV.

The acquisition included the Kanowna Bell gold mine, and would increase Northern Star’s total reserve by 134%, to 1.1-million ounces, and its resource base by 43%, to 5.6-million ounces.Northern Star MD Bill Beament pointed out that the two operations would transform Northern Star into a major Australian gold miner, and would ensure that the company met the demands of domestic and international investors with respect to critical mass, multiple operations, low costs, consistent dividends and strong growth prospects. Northern Star told shareholders that funding for the acquisition would be sourced from a combination of existing cash reserves, a new A$50-million debt facility, and a two-tranche equity capital raising to raise A$100-million, as well as a A$15-million share purchase plan.

1 comment: