Commodities

Acquisition brings iconic Australian gold asset under 100 per cent domestic ownership for the first time

Landmark acquisition of the iconic Kalgoorlie Super Pit gold mine creates a leading partnership in the Australian gold sector.

Sector	Commodities
Sub-sector	Metals and Mining
Location	Australia

Opportunity

Following the sale of Barrick Gold Corporation’s 50 per cent interest in the Kalgoorlie Super Pit to Saracen Mineral Holdings in November 2019, Northern Star Resources Limited and Macquarie Capital quickly pivoted to engage with Newmont Goldcorp Corporation regarding the possible sale of its remaining 50 per cent interest in the asset.

Approach

In the narrow transaction window prior to Christmas, Macquarie Capital assisted Northern Star to negotiate, execute and announce the $US800 million transaction with Newmont within ten days.

The acquisition was partly funded by a fully underwritten $A765 million institutional placement that was launched on the last possible day prior to the closure of equity markets for 2019, providing funding certainty to the vendor. Macquarie acted as financial adviser to Northern Star on the acquisition and as global coordinator, joint lead manager, bookrunner and underwriter to the equity raising.

Outcome

The transaction has created a partnership between two leading Australian gold miners, Northern Star and Saracen, and brought the Kalgoorlie Super Pit under 100 per cent Australian ownership for the first time, with the project and Kalgoorlie community poised to flourish under their combined leadership. Both Northern Star and Saracen have outperformed their peers in the two months following announcement of the transaction.

100 per cent

joint venture brings together best-in-class expertise in open pit and underground mining

590kozpa

average gold production over the last two calendar years, Australia’s 3rd largest gold mine

80Moz

gold endowment as part of the greater Golden Mile and Mt Charlotte Systems

$A765 million

equity raised to partially fund the transaction

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Macquarie Capital

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