Northern Star Resources shares have slumped sharply on the ASX today, after the gold miner announced that its major shareholder and members of its board of directors had agreed to sell a combined 10 per cent stake in the company to a group of institutional investors.
Northern Star shares finished trade down 12 per cent, at $1.34.
The gold miner said major shareholder Investmet would reduce its stake from 10 per cent to 5 per cent, while Investmet nominee Peter Farris will not stand for re-election.
Mr Farris’ departure from the board leaves Michael Fotios as Investmet’s sole representative on the Northern Star board. In conjunction with the Investmet sale, Mr Fotios sold a further 7.4 million shares held by other entities.
Managing director Bill Beament sold off 8.2 million shares, approximately one third of his holding, while chairman Chris Rowe has sold off 3.3 million shares, leaving him with around 4 million shares.
The transactions were priced at $1.35 per share, and conducted by stockbroker Morgan Stanley.
The company said resources banker and company director John Fitzgerald would join its board as a non-executive director.
Chairman Chris Rowe said Investmet’s decision to reduce its stake was a pivotal moment in the company’s evolution.
“We are particularly grateful for the crucial role Investmet played in assisting Northern Star to acquire the Paulsens Gold mine in mid-2010,” Mr Rowe said in a statement.
“With their assistance Northern Star shares have risen from 1c to more than $1.53 today – a spectacular success by any standard.”
Mr Beament said now was a logical time to reduce his personal tax and debt obligations by selling off Northern Star stock.
“While it was prudent for me to reduce my personal financial obligations, I wanted to retain substantial exposure to what I believe is the outstanding growth prospects for Northern Star,” Mr Beament said.
“I have no doubt that the company’s rising production profile and aggressive exploration campaigns will create significant further wealth for shareholders and I want to ensure that I share in that.”
