PERTH (miningweekly.com) – Gold miner Northern Star Resources went into a trading halt on Monday, pending the announcement of a potential significant transaction, as reports swirled that the company would buy major Newmont Goldcorp’s interest in the Super Pit mine, in Kalgoorlie.
Fellow-listed Saracen Mineral Holdings in November struck a $750-million agreement with North American major Barrick Gold to acquire its 50% interest in the Super Pit mine, establishing Saracen as one of Australia’s largest gold producers.
With Newmont reportedly on the cusp of signing a sales agreement with Northern Star, the Super Pit would revert to a fully Australian-owned operation.
The Financial Review on Monday reported that Northern Star was likely to raise capital to fund the acquisition, with the offer size estimated at around $700-million.
The Super Pit currently has an estimated reserve of 7.3-million ounces, and has produced an average of 660 000 oz/y at an all-in sustaining cost of around A$1 100/oz over the last five years.
Northern Star in November gained control of fellow listed Echo Resources through a A$242.6-million takeover deal, gaining control of that company’s Yandal gold project, in Western Australia.
At the tail end of last year, Northern Star also spent $260-million to acquire the 4.1-million ounce Pogo underground gold mine, in Alaska, which produced 45 594 oz in the June quarter of this year.
The gold miner is targeting increased rates of mine development and rising stoping tonnage, to increase gold production while also lowering costs at Pogo.