Northern Star, Saracen create $11.5bn Australian gold giant

Australia’s Northern Star Resources (ASX: NST) is buying smaller peer Saracen Mineral Holdings (ASX: SAR) in a deal that will create a A$16 billion ($11.5bn) gold giant — the world’s eighth largest gold miner by market value.

The agreed A$5.76 billion ($4.14bn) merger comes amid record high gold prices —  above $2,000 per ounce for the first time in August — brought on by investors rushing to safe-haven assets in response to fears triggered by the coronavirus pandemic.

The combined company, with mines in Australia and Alaska, will produce 2 million ounces of gold a year from fiscal 2027. It is also expected to deliver as much as A$2 billion in operational savings, the miners said in the statement.

Northern Star, Australia’s second-largest gold miner, will own 64% of the combined entity, with Saracen holding the remaining 36% stake. A shareholder meeting to formally approve the proposal will be held in January 2021, the companies said.

Northern Star and Saracen already jointly run Australia’s iconic Super Pit, which has an estimated reserve of 7.3 million ounces and has produced on average 660,000 ounces a year over the last five years.

More to come…

from MINING.COM https://ift.tt/2GuvPAl