Northern Star’s Offers Got Rejected by Tribune And Rand

northern star

Australian gold producer, Northern Star Resources Limited (ASX: NST) made an announcement on 31 December 2018 stating that it has received written rejections of the legally binding offers which were made by Northern Star for the acquisition of 49 percent stake in the East Kundana Joint Venture (EKJV) it does not already own.

Earlier on 13 November 2018, Northern Star had made legally binding offers to Tribune Resources Limited (ASX: TBR), Rand Mining Limited (ASX: RND) and Rand Exploration NL to acquire 49 percent interest in EKJV for a total consideration of AUD$150 million in cash. [optin-monster-shortcode id=”swikrbu1d9j9aq0o4cko”]

Northern Star had made an unsolicited $37.5 million offer for Rand Mining and Rand Exploration’s 12.25% interest in the EKJV and an unsolicited offer for Tribune Resources Ltd.’s 36.75% interest in the EKJV for a consideration of $112.5 million.

However, now both the companies have rejected the Northern Star offer, and the proposed transactions have not been put to the Tribune or Rand shareholders for consideration. The Rand’s Board of Directors has resolved to reject the Offer and concluded that the Offer significantly undervalues Rand’s interest in the EKJV. Similarly, the Tribune Board has also rejected the Offer and has concluded that the Offer substantially undervalues Tribune’s interest in the EKJV. While taking the decision to reject the offers, both the Companies have considered the financial advice which is provided by their financial adviser, Argonaut.

Although both the companies have rejected the proposals, Northern Star still believes that its cash offer is a fair and sensible pathway for Tribune and Rand’s shareholders to unlock the value of their company’s stake in the EKJV. Currently, Northern Star is having 51% interest in EKJV, and Tribune and Rand hold remaining interest.

Recently on 20 December 2018, Northern Star provided its exploration update in which the company announced strong exploration results which are going to help the company in laying the foundations for a further significant increase in inventory and mine lives across the company’s operations in Australia. Recent drilling results at Kanowna Belle is supporting the company’s growing view that the Velvet lode at Kanowna Belle is going to link back to the Lowes deposit supported by the discovery of multiple mineralized structures down plunge from Velvet.

At Kundana EJKV, the in-mine extensional drilling across the Rubicon-Hornet-Pegasus mining complex have extended the mineralized Pode system and the main K2 structure northwards and down-plunge from Pegasus.

As per Northern Star Executive’s Chairman Bill Beament, based on the exploration results and the exploration activity which are planned for the next six months, the company expects to generate substantial increases in its Resources and convert more of them into Reserves by the middle of 2019.

In the last six months, the share price of NST decreased by 28.51 percent as on 28 December 2018. NST’s shares traded at $9.240 with a market capitalization of circa $5.91 billion as on 31 December 2018 (AEST 12:30 PM).


This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

Join Our Discussion

Start discussion with value Investors for ASX Stock Market Investment and Opinion.

6 Cannabis Stocks under Investor’s Limelight…

Cannabis companies that sell both medicinal weed and recreational pot. Marijuana stocks to look at. Marijuana mergers and acquisitions. Dispensary data analytics. Upcoming marijuana IPO’s Those phrases have become increasingly common as marijuana legalization spreads.

Global spending on legal cannabis is expected to grow 230% to $32 billion in 2020 as compared to $9.5 in 2017, according to Arcview Market Research and BDS Analytics. As of June 29, 2018 the United States Marijuana Index, despite a lot of uncertainty around regulations, has over the past 1 year gained 71.49%, as compared to about 12% gain seen by the S&P 500.

Click here for your FREE Report