Oct 06, 2020

Australian gold miners in $16b merger

Australian gold miners in $16b merger

Saracen and Northern Star have agreed to merge into a $16 billion company which will rank among the Top 10 global gold producers.

The merger-of-equals agreement will be implemented via a scheme of arrangement under which Northern Star will acquire 100 per cent of the fully paid ordinary shares in Saracen.

“The benefits which will flow to Saracen shareholders from this merger are significant,” Saracen managing director Raleigh Finlaysn said.

“The pre-tax synergies alone are expected to be worth in the order of $1.5 to $2 billion over the next 10 years.”

The merged group will be known as Northern Star Resources and will be targeting production of two million ounces per annum from three Tier-1 production centres by FY2027.

This would be across the companies’ Kalgoorlie and Yandal operations in Western Australia and Pogo, North America.