Australia’s Northern Star Resources
(ASX: NST) is buying smaller peer Saracen Mineral Holdings
(ASX: SAR) in a deal that will create an A$16 billion (US$11.5 billion) gold giant, the world’s eighth-largest gold miner by market value.
The A$5.76 billion (US$4.14 billion) merger comes amid record high gold prices — above US$2,000 per oz. 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 oz. gold per year from fiscal 2027. It is also expected to deliver as much as A$2 billion in operational savings, the miners said in a news release.
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.
Continue reading at www.northernminer.com.