02/03/2011 - 14:01

Northern Star debt-free on Paulsens

02/03/2011 - 14:01

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Perth-based goldminer Northern Star Resources says it is debt free and ready for growth after paying off the final $2.5 million production royalty relating to its $40 million acquisition of the Paulsens gold mine in the Pilbara.

Northern Star debt-free on Paulsens

Perth-based goldminer Northern Star Resources says it is debt free and ready for growth after paying off the final $2.5 million production royalty relating to its $40 million acquisition of the Paulsens gold mine in the Pilbara.

The stock gained 10.4 per cent to trade at $0.37 at close of trade today.

Northern Star said it would release a resource upgrade and new mine plan for Paulsens later this month.

It will also release an exploration strategy for its Ashburton gold project.

"As well as giving Northern Star its second major deposit within trucking distance of the Paulsens plant, Ashburton boasts numerous walk-up drilling targets which will be the subject of an aggressive exploration campaign.," the company said.

"Northern Star will also use its enviable financial position to consider further acquisitions in line with its objective of building a major mining house."

Northern Star Managing Director Bill Beament said the repayment of the $40 million acquisition in just seven months provided strong evidence of the solid production, cashflow and exploration performance at Paulsens.

Paulsens produced 48,559 ounces of gold in the December half, generating revenue of $65.4 million.

"With the acquisition repayments completed, the company expects the updated resource statement and new mine plan to generate further strong cash flows," Mr Beament said.

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