Gold Road backs Northern Star’s De Grey takeover


De Grey's Hemi gold project
De Grey's Hemi gold project
Gold Road Resources says it will vote in favour of Northern Star Resources’ proposed takeover of De Grey Mining, in a move that could see the midtier gold producer receive more than $1-billion in Northern Star shares.
Gold Road, which owns about 17.26% of De Grey, confirmed its support ahead of the target company’s scheme meeting on April 16. If the transaction is approved by De Grey shareholders and the Federal Court, the scheme is expected to be implemented by May 5.
Based on De Grey’s April 11 closing price, Gold Road’s stake is valued at around $1.035-billion. Upon completion, those shares will be exchanged for Northern Star equity under the terms of the scheme of arrangement.
“Any decision Gold Road makes regarding the Northern Star shares it will receive will be made with a view to maximising value for all Gold Road shareholders,” the company said in a statement.
Northern Star announced its A$5-billion acquisition of De Grey in December. If successful, the deal will provide Northern Star with access to a low-cost, long-life and large-scale gold development via the Hemi gold project in Western Australia's Pilbara region.
Comments
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation