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October 2, 2018

Northern Star concludes $260m Pogo gold project acquisition

Northern Star Resources has closed the previously announced $260m transaction to buy the Pogo underground gold project in Alaska, US, from Sumitomo Metal Mining and Sumitomo.

Northern Star Resources has closed the previously announced $260m transaction to buy the Pogo underground gold project in Alaska, US, from Sumitomo Metal Mining and Sumitomo.

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The agreement for the transaction was signed in August.

Prior to the conclusion of the transaction, Sumitomo Metal Mining operated the mine with an 85% interest, while Sumitomo owned the residual 15% interest.

As a result of the acquisition, Northern Star has updated its production guidance for the financial year 2019 to 850,000oz-900,000oz.

“I would like to thank Sumitomo for their assistance and the outstanding condition in which they have left the Pogo mine.”

The company is now focused on converting the Pogo mine’s 4.1Moz gold inventory to Joint Ore Reserves Committee (JORC) status.

Northern Star Resources executive chairman Bill Beament said: “On behalf of Northern Star, I would like to thank Sumitomo for their assistance and the outstanding condition in which they have left the Pogo mine.”

Pogo produced 3.8Moz at 13.6gpt over the past 12 years at an average rate of around 300,000oz per annum.

The project is located 145km south-east of Fairbanks in the Tintina Mineral Belt, which is a 200km-wide, 1,200km-long arc comprising mostly gold deposits.

As at 31 December last year, the project had resources of 3.34Moz at 12.3gpt and reserves of 760,000oz at 11.9gpt.

The company arranged funding for the transaction by completing an A$175m fully underwritten placement to institutional investors.

At the time of signing the deal in August, Beament said that Northern Star’s decision to buy the project was influenced by the potential to grow its resources and reserves, mine life, production and cash flow.

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What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
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  • Consumer context
  • Industry environment
  • Competitive environment
  • Route to market
Interested to learn more about what to include in your IPO Industry Assessment report? Download our free whitepaper.
by GlobalData
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