North­ern Star $150m of­fer for EKJV stake

The Australian Mining Review - - NEWS - EL­IZ­A­BETH FABRI

NORTH­ERN Star Re­sources has made a bind­ing of­fer to ac­quire the 49 per cent stake in the East Kun­dana Joint Ven­ture (EKJV) it does not al­ready own for $150 mil­lion.

The EKJV formed part of the miner’s Kal­go­or­lie Gold Oper­a­tions com­pris­ing the Mil­len­nium, EKJV, Kanowna Belle and South Kal­go­or­lie de­posits.

The miner ac­quired a 51 per cent in­ter­est in EKJV in March 2014 through its ac­qui­si­tion of Gilt-Edged Min­ing, a wholly-owned sub­sidiary of Bar­rick Gold.

Rand Min­ing and Tri­bune Re­sources held the re­main­ing 49 per cent in­ter­est, which they ob­tained in 2002.

North­ern Star ex­ec­u­tive chair­man Bill Bea­ment said the cash of­fer rep­re­sented an “out­stand­ing of­fer” for Tri­bune and Rand share­hold­ers.

“The cash of­fer to ac­quire the as­sets is a di­rect and clear means for Tri­bune and Rand share­hold­ers to un­lock the value of their com­pany’s in­ter­ests,” Mr Bea­ment said.

Sub­ject to ap­proval, the trans­ac­tion was ex­pected to be fi­nalised by 31 Jan­uary 2019.

The deal fol­lowed North­ern Star’s land­mark ac­qui­si­tion of Su­mit­omo Metal Min­ing Co and Su­mit­omo Cor­po­ra­tion’s Pogo mine in Alaska in Au­gust for $US260 mil­lion.

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