Northern Star Resources Ltd (ASX: NST) is pleased to announce the completion for its A$765M fully underwritten placement to institutional investors, with strong support from existing shareholders and new investors. The company issued 85 million shares at the issue price of A$9.00 per new share. A few highlights from the announcement are as follow:
- The proceeds of the placement would be used to partially fund the acquisition of 50 per cent of Kalgoorlie Consolidated Gold Mines Pty Ltd (KCGM) which also includes Kalgoorlie Super Pit gold mine and associated assets of Newmont Goldcorp Australia Pty Ltd for combined value of US$800 million
- There was overwhelming support for KCGM acquisition and the Placement, which was heavily over-subscribed
- KCGM is a 50:50 JV between Newmont and Saracen Mineral Holdings
- The KCGM acquisition would be immediately accretive to Northern Star on an EV/Reserve, EV/Resource, P/NAV basis and earnings per share
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