Northern Star Finalises De Grey Acquisition, Eyes Growth with Hemi Project
Northern Star Resources has completed its acquisition of De Grey Mining, issuing new shares to De Grey shareholders and preparing to integrate the promising Hemi gold project into its portfolio.
- Acquisition of De Grey Mining completed via Court-approved Scheme
- De Grey shareholders receive 0.119 Northern Star shares per De Grey share
- De Grey to be delisted from ASX effective 6 May 2025
- Hemi gold project expected to be a low-cost, long-life asset in Western Australia
- Northern Star commits to strong stakeholder engagement including Kariyarra people
Acquisition Completion and Share Issuance
Northern Star Resources Ltd (ASX: NST) has officially completed its acquisition of De Grey Mining Ltd (ASX: DEG) through a Court-approved Scheme of Arrangement. The transaction marks a significant milestone for Northern Star, as all De Grey shares have now been transferred and eligible shareholders have been issued new Northern Star shares at a ratio of 0.119 per De Grey share held as of 28 April 2025.
The newly issued Northern Star shares are set to commence trading on the ASX on a normal settlement basis from 6 May 2025. For shareholders deemed ineligible or foreign residents subject to capital gains tax withholding, Northern Star has issued shares to a Sale Nominee who will sell these shares and distribute the net proceeds accordingly.
Delisting of De Grey and Strategic Asset Integration
Following the acquisition, De Grey Mining has applied for removal from the official ASX list, with delisting expected to take effect after the close of trading on 6 May 2025. This move consolidates Northern Star’s position as the sole owner of De Grey’s assets, most notably the Hemi gold project.
Stuart Tonkin, Northern Star’s Managing Director and CEO, emphasised the strategic importance of the acquisition, highlighting Hemi’s potential as a low-cost, long-life, and large-scale gold mine located in the highly regarded tier-1 jurisdiction of Western Australia. The integration of Hemi is expected to enhance Northern Star’s asset quality and cash-generating capabilities, aligning with the company’s broader strategy to deliver superior returns to shareholders.
Community and Stakeholder Engagement
Tonkin also underscored Northern Star’s commitment to building strong relationships with the Kariyarra people and other Traditional Owners in the Hemi project area, as well as with additional stakeholders. This focus on community engagement is critical in ensuring sustainable development and operational success in the region.
As Northern Star moves forward, attention will turn to the operational integration of the Hemi project and the realisation of its anticipated value within the company’s portfolio.
Bottom Line?
Northern Star’s acquisition of De Grey sets the stage for growth, but the market will watch closely how the Hemi project delivers on its promise.
Questions in the middle?
- How quickly will Northern Star advance development at the Hemi gold project?
- What impact will the new share issuance have on Northern Star’s share price and shareholder base?
- How will Northern Star manage relationships with Traditional Owners and local stakeholders during project integration?
