Northern Star (ASX:NST) strikes gold in Alaska
Stock
Northern Star (ASX:NST) $7.87 as at 3/09/2018Event
The gold miner has spiked 15% higher today after resuming trading following a capital raise announced on Thursday last week. The company was looking to raise $175m in order to partially fund the $US 260mil acquisition of Pogo, an underground gold mine in Alaska. New shares were issued at $6.70, a 3.7% discount to the previous close, which are now looking very cheap with the placement reportedly heavily oversubscribed. The transaction has been compared to Northern Star’s previous acquisition of Jundee – a key asset in operation, with cost out ability and potential to extend mine life with further discoveries. The new asset gives Northern Star three high quality assets with the potential for each to produce over 300,000oz of gold per annum, just 17 mines are currently producing more than this in the Tier-1 mining jurisdictions of Australia, the US & Canada. Northern Star (ASX:NST) Chart
