ENP Newswire - 11 June 2014
Release date- 10062014 - Northern Star Resources Limited (ASX: NST) is pleased to advise that the third party holding the right of first refusal to buy the Jundee gold project in WA has waived that right.
In return for waiving the right, Northern Star will issue the third party shares valued at $10 million, based on the 10-day volume-weighted average price prior to completion.
The shares will be issued on completion of the asset sale agreement with Newmont as announced on 13 May 2014 and will be escrowed for 6 months.
The Jundee acquisition will see Northern Star become the second-biggest ASX-listed gold miner with annual production of 550,000oz and targeted all-in sustaining costs of less than A$1,050/oz.
Northern Star is enjoying outstanding success in bedding down the three project acquisitions it made prior to Jundee - Plutonic, Kanowna Belle and Kundana.
Northern Star Managing Director Bill Beament said the agreement with the third party eliminates one of the remaining conditions precedent for Northern Star to complete the acquisition on 1 July 2014.
Northern Star anticipates that satisfaction of the previously announced financing condition will occur on or before 26 June 2014. 'We are delighted with the terms on which we have acquired Jundee,' Mr Beament said. 'The project will contribute about 200,000ozpa to our total output and help ensure we meet our targeted all-in sustaining cost of less than A$1,050/oz.'
Northern Star Resources Limited
Level 1, 1 Puccini Court
Stirling WA 6021
Tel: +61(0)8 6188 2100
Fax: +61(0)8 6188 2111