Northern Star $150m offer for EKJV stake
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.