Northern Star to Acquire De Grey Mining in $5 Billion Deal

Northern Star Resources is set to acquire De Grey Mining, the owner of the globally significant Hemi gold project in Western Australia, in a deal valued at approximately $5 billion.

Under the agreement, De Grey shareholders will receive 0.119 new Northern Star shares for each De Grey share held, equating to an implied offer price of $2.08 per share. This represents a 37.1% premium to De Grey’s last closing price of $1.52 on November 29.

A Transformational Acquisition

De Grey’s flagship Hemi gold project, located in WA’s Pilbara region, boasts a mineral resource estimate of 264 million tonnes at 1.3g/t gold for 11.2 million ounces (Moz). The project is forecast to produce 530,000 ounces per year over its first decade, offering Northern Star access to a low-cost, long-life, and large-scale gold development opportunity.

“This acquisition aligns perfectly with our strategy and enhances our purpose of delivering superior returns to shareholders,” said Stuart Tonkin, Northern Star managing director and CEO. “Hemi will complement our portfolio with its Tier 1 jurisdiction, scale, and cost profile, reinforcing Northern Star’s position as a global gold leader.”

Combined Entity and Shareholder Benefits

Upon completion of the scheme, Northern Star shareholders will own 80.1% of the combined entity, with De Grey shareholders holding the remaining 19.9%. The De Grey board has unanimously recommended the deal, citing its value and long-term benefits.

“This transaction provides De Grey shareholders an upfront premium while retaining exposure to Hemi’s future growth and Northern Star’s broader portfolio,” said Glenn Jardine, De Grey’s managing director. “The integration of our talented team into Northern Star will ensure Hemi continues its trajectory towards becoming a world-class gold mine.”

Expanding Northern Star’s Growth Path

Northern Star’s existing portfolio includes production centres in Kalgoorlie and Yandal in WA, and the Pogo mine in Alaska. The addition of Hemi will establish Northern Star’s third production centre in WA and its fourth globally, increasing its growth pathway to approximately 2.5 million ounces annually.

Australian Gold Sector Consolidation

This acquisition marks another major milestone in 2024’s wave of mergers and acquisitions in Australia’s gold sector. Other notable deals include the Red 5–Silver Lake Resources merger, Westgold Resources’ acquisition of Karora Resources, and Greatland Gold’s partnership with Newmont.

“This is a transformational step for both companies, combining exceptional assets and expertise,” said Jardine. “Alongside my fellow directors, I wholeheartedly support this transaction and look forward to the combined group’s bright future