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Highlights

  • De Grey shareholders to vote on acquisition at scheme meeting scheduled for April 16
  • Gold Road Resources, holding 17% of De Grey, confirms support for the transaction
  • If approved, deal completion expected by end of April with integration by early May

Northern Star Resources Ltd (ASX: NST) is nearing completion of a court-approved acquisition of fellow gold miner De Grey Mining Ltd (ASX: DEG) in a transaction valued at approximately $6 billion. This deal, first announced in December, awaits shareholder approval at a scheme meeting scheduled for April 16.

The acquisition comes amid record-breaking gold prices, with gold recently surpassing US$3,100 per ounce. The rising prices have driven a series of mergers across the sector, as companies seek to expand their asset base and navigate volatile equity markets.

De Grey shareholders will, if the proposal passes, receive Northern Star shares in exchange for their holdings. The acquisition is expected to become effective by April 23, with operational integration anticipated to be completed by May 5.

A key supporter of the deal is Gold Road Resources Ltd (ASX: GOR), which holds a 17% stake in De Grey. The company announced it will vote in favour of the acquisition, potentially unlocking more than $1 billion in value based on current market prices. According to industry commentary, Gold Road may look to divest some of its Northern Star shares following the transaction to fund other opportunities.

For Northern Star, the acquisition includes De Grey’s exploration and development assets, adding scale to its gold portfolio. While the integration of such a large transaction presents operational and financial considerations, market participants will be watching closely to assess how the move impacts Northern Star's longer-term positioning in the domestic mining sector.

The deal adds to a broader trend of consolidation in the Australian gold industry, with miners seeking to optimise cost structures and resource bases amid fluctuating commodity markets. Investors will be keeping a close eye on the outcome of the vote and the subsequent transition process.