Northern Star

Canaccord Genuity acts as Joint Lead Manager, Underwriter and Bookrunner to a A$765 million equity raising for Northern Star Resources Limited

Canaccord Genuity is pleased to announce the successful completion of a fully underwritten institutional placement (“Placement”) to raise A$765 million for Northern Star Resources Limited (ASX: NST) (“Northern Star” or the “Company”). The Placement comprised the issue of 85 million shares at an issue price of A$9.00 per new share.

Canaccord Genuity acted as Joint Lead Manager, Underwriter and Bookrunner to the Placement, which was heavily oversubscribed and received strong support from a range of new and existing, high quality domestic and international institutional investors.

Proceeds from the Placement were used to partially fund Northern Star’s acquisition of a 50% interest in Kalgoorlie Consolidated Gold Mines Pty Ltd (“KCGM”), which owns the Kalgoorlie Super Pit and associated assets in Western Australia, from Newmont Goldcorp Corporation for A$1.16 billion (US$800 million) (the “Transaction”). KCGM will become a 50:50 joint venture between Northern Star and fellow ASX-listed gold producer Saracen Mineral Holdings Limited.

The Transaction delivers Northern Star a half-share of one of the most significant gold systems in the world with an endowment to date of ~80Moz and average production of ~590,000oz per annum, which will further consolidate Northern Star’s position as Australia’s second largest ASX-listed gold producer.

By way of background, Northern Star has a current market capitalization of A$6.8 billion and produced 813koz of gold in FY2019 from three key operating mines, namely Jundee, Kalgoorlie (Kanowona Belle and Kundana operations) and its Pogo mine in Alaska. Northern Star recently completed its A$242 million acquisition of Echo Resources Limited via an off-market takeover in which Canaccord acted as financial advisor to the Company.

Canaccord’s Investment Banking team was led by Duncan St John and included, Carl Henschke, Christian Calabrese and Stefan Collins, with significant support provided by Marcus Freeman. Canaccord’s Global Institutional Sales team was led by Alex Unsworth and Will Morley, and included Brett Hucker, Jo Battershill, Nathan Mackay and James Thomson. There was also significant support from Canaccord’s Global Sales team.