Northern Star’s De Grey Acquisition Raises Integration and Execution Questions
Northern Star Resources has completed its acquisition of De Grey Mining, issuing new shares and preparing to delist De Grey from the ASX, marking a strategic expansion into Western Australia's Hemi gold project.
- Acquisition of De Grey Mining completed via Court-approved Scheme
- De Grey shareholders issued 0.119 Northern Star shares per De Grey share
- De Grey to be delisted from ASX effective 6 May 2025
- Hemi gold mine acquisition aligns with Northern Star’s growth strategy
- Northern Star commits to strong stakeholder and Traditional Owner engagement
Completion of Acquisition
Northern Star Resources Ltd (ASX: NST) has officially completed its acquisition of De Grey Mining Ltd through a Court-approved Scheme of Arrangement. This milestone marks a significant step in Northern Star’s strategic expansion, with all De Grey shares now transferred and eligible shareholders receiving Northern Star shares at a ratio of 0.119 per De Grey share held as of 28 April 2025.
The newly issued Northern Star shares are set to begin trading on the ASX on a normal settlement basis from 6 May 2025, integrating De Grey’s shareholder base into Northern Star’s capital structure. Shares attributable to ineligible or foreign resident shareholders will be sold by a Sale Nominee, with proceeds distributed accordingly, ensuring compliance with regulatory and tax obligations.
Delisting and Integration Plans
Following the acquisition, De Grey Mining has applied for removal from the ASX official list, with delisting expected to take effect after market close on 6 May 2025. This move consolidates Northern Star’s ownership and simplifies its corporate structure, allowing for streamlined management and operational integration.
Central to the acquisition is the Hemi gold mine, located in the highly prospective and politically stable jurisdiction of Western Australia. Northern Star’s Managing Director and CEO, Stuart Tonkin, emphasised the strategic fit of Hemi within the company’s portfolio, highlighting its potential as a low-cost, long-life, large-scale asset that will enhance cash earnings and shareholder returns.
Strategic and Community Commitments
Tonkin also underscored Northern Star’s commitment to building strong relationships with the Kariyarra people and other Traditional Owners in the Hemi project area, signalling a respectful and collaborative approach to Indigenous engagement. This focus aligns with broader industry trends prioritising social licence and sustainable development in mining operations.
While the acquisition promises to bolster Northern Star’s asset quality and growth trajectory, the company has yet to provide detailed guidance on the integration timeline or the financial impact beyond the share issuance. Market participants will be watching closely for updates on operational synergies and cost management as the Hemi project is brought into Northern Star’s fold.
Bottom Line?
Northern Star’s acquisition of De Grey and the Hemi asset sets the stage for a new growth chapter, but integration execution will be key to realising promised value.
Questions in the middle?
- How will Northern Star manage integration risks and operational timelines for Hemi?
- What are the expected financial impacts on Northern Star’s earnings and capital structure post-acquisition?
- How will Northern Star’s engagement with Traditional Owners influence project development and approvals?
