Northern Star agrees to buy De Grey Mining for about A$5bn

De Grey holders were offered 0.119 Northern Star shares per share, worth A$2.08 and a 43.9% premium to the 30-day average price. The target is Hemi in the Pilbara, one of the largest undeveloped gold projects in the world. The deal is a scheme of arrangement recommended by De Grey’s board.

Why it matters. A buyer with mills and mine-building experience can pay a large premium for a big undeveloped deposit and still create value.

Source

Mining Weekly

In the course

Module 9: The M&A process