Northern Star Resources and Saracen Mineral Holdings have agreed to a merger-of-equals, worth A$16 billion, via a Saracen scheme of arrangement under which Northern Star will acquire 100% of the shares in Saracen.

The deal creates a Top 10 global major gold producer with high-margin assets located exclusively in Tier 1 jurisdictions. The company will have immediate production of 1.6 million ounces per annum (Mozpa) with a pathway to 2.0 Mozpa by FY2027. 

The merged company will benefit from the combined skills and experience of the two leading management teams. Northern Star CEO Stuart Tonkin will remain in his post, and Executive Chair Bill Beament will transition from executive to non-executive chair in July 2021. Saracen Managing Director Raleigh Finlayson will become managing director of the new company, and Morgan Ball will be chief financial officer.

Upon completion, the board of nine will comprise of five directors from Northern Star (including Beament) and four directors from Saracen (including Finlayson). Saracen’s Non-Executive Chair Tony Kiernan will be the lead independent non-executive director.

“Northern Star has only ever pursued growth when it will create value for shareholders, and this merger-of-equals will create an abundance of value for both Northern Star and Saracen shareholders,” said Beament.

“This is significant value-creating M&A. Our position as joint venture partners at [Kalgoorlie Consolidated Gold Mines], the close proximity of the majority of the combined company’s assets and a host of other synergies makes this a unique opportunity exclusive to Saracen and Northern Star shareholders.”

Source: www.nsrltd.com