Northern Star tipped to buy Newmont out of Super Pit

Northern Star Resources has gone into a trading halt, with speculation mounting the acquisitive gold miner is raising funds to acquire a half stake in the Super Pit.

Media reports suggest Northern Star has signed Canaccord Genuity and Macquarie Group to launch a $700 million capital raising, with the funds expected to go towards acquiring Newmont Goldcorp's 50 per cent stake in the iconic mine in Kalgoorlie-Boulder.

The company’s shares are expected to remain in a halt until December 18.

The speculation follows Saracen Mineral Holdings last month inking a $US750 million ($1.1 billion) deal to acquire the other 50 per cent stake in the Super Pit, from Barrick Gold. 

If the Northern Star transaction is completed, it will mark the first time in the mine’s history that it is 100 per cent Australian-owned.

The Super Pit was developed by Bond International Gold and comprises the 3.5 kilometre long, 1.5km wide Fimiston open pit, which has produced more than 21 million ounces.

The mine is located along the Golden Mile, the fifth-largest gold producing region in the world.

As well as the iconic Fimiston pit, the Super Pit operation includes the Mt Charlotte underground gold mine, as well as two processing facilities.

Operated by Kalgoorlie Consolidated Gold Mines, its current life of mine plan calls for an end to underground mining at Mount Charlotte in 2024 and open pit mining in 2026.

Saracen Minerals managing director Raleigh Finlayson said at the time of his company’s purchase that there was plenty of scope to extend the mine’s life, based on estimated resources and exploration upside.

Northern Star shares last traded at $9.65.