In a landmark move for Australia’s mining sector, Northern Star Resources, the country’s largest gold miner, is set to bolster its portfolio with the acquisition of De Grey Mining, following a resounding shareholder vote. An impressive 99.64% of De Grey’s shareholders approved the $5 billion takeover during a meeting in Perth on Wednesday, valuing the company at $2.08 per share.
This strategic acquisition, first announced in December, aims to secure De Grey’s six-million-ounce Hemi gold discovery, located in Western Australia’s Pilbara region. The addition of this significant find aligns with Northern Star’s goal of enhancing its operational footprint in the region.
The deal gained further momentum when Gold Road Resources, which holds a 17.26% stake in De Grey valued at over $1.03 billion, confirmed its support for the takeover earlier this week. With this backing, the acquisition appears firmly on track for approval by the Federal Court, which is set to review the takeover next Tuesday.
This acquisition comes at a time of soaring gold prices, with the Australian dollar gold price surpassing $5,000 per ounce for the first time on April 1, marking a significant milestone in the commodity’s history since it first exceeded $1,000 per ounce in January 2008. As the mergers and acquisitions landscape heats up, Northern Star’s latest move positions it to capitalize on the favorable market conditions and solidify its standing as a leader in the gold mining industry.
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