Rights waived over Jundee purchase

Northern Star Resources has cleared the main hurdle to its acquisition of the Jundee gold mine while also announcing monthly production results that were better than its own targets.

The $82.5 million Jundee purchase from Newmont Mining was subject to a third party, believed to be explorer Mark Creasy, waiving his right to match the Northern Star price.

Having waived that right, that third party will be issued with $10 million of Northern Star shares.

Under the Jundee acquisition, Northern Star will become the second largest ASX-listed gold miner, with annual production of about 550,000 ounces.

Managing director Bill Beament said the agreement with the third party eliminated one of the remaining conditions precedent for Northern Star to complete the acquisition.

“The project will contribute about 200,000ozpa to our total output and help ensure we meet our targeted all-in sustaining cost of less than $1,050/oz,” he said.

The Jundee purchase follows the company’s recent acquisition of the Plutonic, Kanowna Belle and Kundana gold mines. 

In May, the Northern Star mined 41,567oz of gold and produced 41,668oz, well ahead of its publicly stated targets which aim to produce a combined annual rate of at least 350,000oz from Paulsens and its recently acquired mines.

“We are now looking forward to beginning work at Jundee, where we have no doubt we will create further value for our shareholders,” Mr Beament said.

Northern Star's share price rose by 3.1 per cent to $1.16 at 11:50am WST.