Northern Star Resources has officially completed its $5 billion acquisition of De Grey Mining. The deal was finalised through a Court-approved Scheme of Arrangement under the Corporations Act 2001. The move marks a major milestone in the ongoing consolidation of gold assets across Western Australia.
De Grey has submitted its request for delisting from the Australian Securities Exchange. The removal from the official ASX list will take effect after the close of trading on 6 May 2025. De Grey shares had already been suspended following the effectiveness of the Scheme.
Figure 1: Northern Star finalises $5 Billion Acquisition of De Grey Mining
Scheme Consideration Finalised for Shareholders
De Grey shareholders have now received the agreed Scheme consideration. Northern Star issued 0.119 of its new shares for every De Grey share held. The conversion was based on holdings as of 5:00 pm AWST on 28 April 2025.
The transaction valued each De Grey share at $2.08, representing a 37.1 per cent premium. This was calculated against De Grey’s closing share price of $1.52 on 29 November 2024. The newly issued Northern Star shares are scheduled to commence normal trading on the ASX from 6 May 2025.
Special Handling for Certain Shareholder Groups
Northern Star also addressed requirements for ineligible shareholders and Foreign Resident CGT Shareholders. The company issued corresponding shares to a Sale Nominee. That Nominee will manage the sale of these shares and distribute net proceeds to the relevant shareholders. This process aligns with section 3.5 of the De Grey Scheme Booklet.
Hemi Gold Project to Bolster Production Pipeline
The Hemi gold project now joins Northern Star’s portfolio. Located in the Pilbara region of Western Australia, Hemi is regarded as one of the largest undeveloped gold deposits globally. The project is expected to produce 530,000 ounces of gold per year during its first ten years of operation. The total estimated gold resource at Hemi stands at 11.2 million ounces.
Northern Star believes the acquisition will drive sustained growth. The Hemi project strengthens its already significant presence in a Tier-1 mining jurisdiction.
Figure 2: The Hemi Gold Deposit of De Grey Mining
Executive Leadership Comments on the Deal
Northern Star Managing Director and CEO Stuart Tonkin welcomed the successful completion of the transaction.
“On behalf of everyone at Northern Star, I welcome De Grey’s team and its shareholders to our company,” Tonkin said.
He stated that the acquisition directly supports the company’s long-term objectives.
“The acquisition of De Grey is strongly aligned with Northern Star’s strategy to generate superior returns for shareholders,” he said.
“We believe that Hemi will deliver a low-cost, long-life and large-scale gold mine in the Tier-1 jurisdiction of Western Australia, further enhancing the quality of our asset portfolio and ability to generate cash earnings.”
Commitment to Stakeholders and Traditional Owners
Tonkin also addressed the company’s commitment to community engagement and local partnerships. He outlined Northern Star’s intention to build long-term relationships in the Pilbara region.
“The Northern Star team looks forward to integrating Hemi into our portfolio and building strong relationships with the Kariyarra people, other Traditional Owners in the Hemi project area and additional Hemi project stakeholders,” Tonkin said.
The Kariyarra People are recognised as the Traditional Owners of the land encompassing the Hemi project.
Gold Market Trends Support Strategic Move
The acquisition comes as global gold prices continue to strengthen. Analysts project further record highs, reinforcing the strategic value of the Hemi project. Northern Star’s expanded resource base now includes a high-output project with long-term production stability.
Industry observers see the acquisition as a calculated expansion. The addition of Hemi increases Northern Star’s capacity to generate strong cash flow and maintain competitive production costs.
Transaction Cements Position Among Top Global Miners
Northern Star’s acquisition consolidates its position among the world’s leading gold producers. With operations now spanning several high-performing assets in Western Australia, the company’s production outlook is robust.
The integration of De Grey’s assets enhances economies of scale. Northern Star’s shareholders benefit from increased diversification and long-term value generation. The company expects Hemi to contribute meaningfully to its annual gold output starting within the next development phase.
Final Steps in Integration Process
With De Grey’s delisting confirmed, the final stage of integration is underway. Northern Star has commenced the transition of operational planning and stakeholder management for the Hemi project.
The company will continue to work with regulatory authorities, regional partners, and Traditional Owners to ensure a responsible and productive development timeline.
Conclusion
Northern Star’s $5 billion acquisition of De Grey Mining is complete. The transaction brings the Hemi gold project under Northern Star’s control. With 11.2 million ounces of resource and a decade of forecasted output, Hemi will be a central asset in the company’s portfolio.
The acquisition is expected to strengthen Northern Star’s market position amid rising gold prices. The company now moves forward with the integration of assets and alignment of its long-term strategic objectives.
