Northern Star becomes Super Pit joint owner
Monday, January 6th, 2020
Northern Star Resources has completed the acquisition of a 50 per cent stake in the Super Pit previously held by Newmont Goldcorp, joining Saracen Mineral Holdings as owners of the Western Australian site.
The company acquired all of the shares in Kalgoorlie Lake View, which held 50 per cent interest in Kalgoorlie Consolidated Gold Mines (KCGM), to complete the deal.
Its acquisition from Newmont was valued at $US800 million ($1.17 billion), with the Super Pit stake worth approximately $US775 million and the other associated Northern Star assets at $US25 million.
As part of the transaction, Northern Star also had the option to obtain Newmont’s power business, which supplies power to KCGM.
The Super Pit starts the new decade under completely new Australian ownership, with Saracen having acquired the other 50 per cent stake from Barrick Gold for $1.1 billion in late November 2019.
Saracen has already reformed senior management committees and provided senior site operational personnel at the site.
Newmont is still managing day-to-day on-site operational activities and will continue to support Northern Star with workers for six months.
With this acquisition, Northern Star has elevated its global significance to a million ounces per annum plus gold producer with four Tier 1 assets in Tier 1 locations.
Northern Star will also have access to one of the world’s most significant gold systems, with a content of 45,000 to 60,000 ounces of gold per vertical metre.
Northern Star is looking at short, medium and long term growth potential for mining schedules, underground production, expanding resources and exploration at the Super Pit.https://www.australianmining.com.au/news/northern-star-completes-super-pit-acquisition/