Northern Star Resources Limited’s A$175 million equity raising

Ashurst has advised Northern Star Resources Limited (‘Northern Star’) on its placement to institutional investors which raised A$175 million (the ‘Placement’) to part fund its acquisition of the high grade, underground Pogo Gold Mine in Alaska from Japanese multi-national Sumitomo Metal Mining Co., Ltd and Sumitomo Corporation for US$260 million (the “Acquisition”).

Pogo is the 8th largest gold mine in the United States. The Acquisition is Northern Star’s first acquisition outside Australia, and will immediately lift Northern Star’s FY2019 production guidance to 850,000-900,000oz at an AISC of $1,050-1,150/oz, making Northern Star the second largest gold producer listed on the ASX.

The Placement was fully underwritten and the issue price was A$6.70 per share. The issue price represented a discount of only 3.74% to Northern Star’s closing price on 29 August 2018.

The team was led by partner Roger Davies (Corporate, in picture) and included partner Antonella Pacitti, senior associate Themo Georgiou and lawyer Toby Newnes (Corporate); lawyer Michelle Gaynor and Meng-Yeow Lim (Project Finance).

Involved fees earner: Roger Davies – Ashurst; Antonella Pacitti – Ashurst; Themo Georgiou – Ashurst; Toby Newnes – Ashurst; Michelle Gaynor – Ashurst; Meng-Yeow Lim – Ashurst;

Law Firms: Ashurst;

Clients: Northern Star Resources Limited;


Author: Michael Patrini