Northern Star Resources (ASX:NST) Announces definitive agreement to acquire De Gray Mining (ASX:°) Through a court approved scheme of arrangement. The transaction is worth approximately $5 billion, with De Gray shareholders receiving 0.119 Northern Star shares for each De Gray share. This represents a premium to De Gray’s recent trading prices (De Gray’s Friday closing price of $1.50 and Northern Star’s Friday closing price of $17.48).

Northern Star is one of Australia’s leading gold producers, with operations across Western Australia and Alaska. The company is known for its focus on low-cost, high-margin projects and operates several Tier 1 mining assets, including the Kalgoorlie Super Pit and Jundee Gold Mine.

De Gray Mining is a gold exploration and development company headquartered in Western Australia. Its flagship asset, the Hemi Gold Project, is one of the world’s largest undeveloped gold projects with a mineral resource of 11.2 million ounces. The Hemi mine, located in the Pilbara region, is valued for its scale, low costs and long mine life.

This agreement is consistent with Northern Star’s strategic plan for production expansion. With a projected annual production of 530,000 oz over the first 10 years, Hemi will complement its Northern Star portfolio and add a fourth production center in Western Australia.

The plan is expected to be implemented by May 2025, and de Gray shareholders will own approximately 19.9% ​​of the combined entity.

Stuart Tonkin, Managing Director and CEO of Northern Star, commented: Hemi has significant growth potential and our operational expertise will maximize its value. ”

Glenn Jardine, Managing Director of De Grey, highlighted the benefits for de Grey’s shareholders, saying: “This transaction will allow us to benefit from Northern Star’s broader portfolio and proven operational capabilities. “We offer an opportunity to maintain attractive premiums and exposure to the Hemi market while receiving significant premiums.”

Northern Star shares are trading 5.77% lower at $16.50.

De Gray Mining stock is trading 28.29% higher at $1.95.