21/02/2012 - 15:29

Northern Star raises $45m, eyes acquisitions

21/02/2012 - 15:29

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Northern Star raises $45m, eyes acquisitions

Gold miner Northern Star Resources has raised $45 million to boost its balance sheet, saying it is now well-funded to pursue aggressive exploration at its Paulsens and Ashburton gold projects, and to seize on any acquisition opportunities if they arise.

Perth-based Northern Star announced today it had placed 50 million shares priced at 90 cents per share to a number of large London-based clients of Morgan Stanley Smith Barney.

The placement was managed by Azure Capital.

The funds take Northern Star’s cash position to around $80 million, capital the company will use to lift production at Paulsens to 100,000 ounces of gold per year by the end of 2012.

Northern Star also announced today that exploration at Paulsens had revealed a spike in resources of 41 per cent to 318,000oz.

Northern Star is also evaluating and exploring its Ashburton project, aiming to establish a stand-alone 100,000oz/year operation.

Managing director Bil Beament said the strong demand for the raising was a reflection of the strength of the company’s projects.

“This outcome is a huge vote of confidence in our strategy to use Paulsens as the foundation on which we can build a substantial mining house,” Mr Beament said in a statement.

At close of trade today Northern Star stocks had dropped 10.6 per cent, to finish at 97 cents. 

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