The Australian miner was able to raise almost $1.3 million to help fund the acquisition of its first overseas asset.
Northern Star Resources Mining News
Acquisition will add 250,000 to 260,000 ounces to its full-year 2019 guidance, boosting expected output to between 850,000 to 900,000 ounces
Gold producers in Australia are outperforming their global competitors, prompting investors to encourage them to expand their horizons and acquire struggling North American rivals.
The acquisition comprises the project’s operating processing facility and 800 square kilometres of Prospective Gold tenure.
They had flagged they would offload some of their higher-cost local operations to focus on their most profitable mines.
Gold hit a three-week low in early US trading Wednesday, but analysts believe the overall trend is upward.
Perhaps the most important aspect of today’s agreements is the fact that both aim to form long-term strategic partnerships to collaborate on further ventures, opening new markets for all the firms involved.
The deal is part of a long-term strategic cooperation agreement that will see Zijin and Barrick collaborate on future projects and joint investments.
With the acquisition Evolution Mining will become Australia's second largest gold producer.
The mid-tier gold miner Northern Star Resources (ASX: NST) confirmed today that it had achieved A$11 million (US$11.53 million) in revenue in March from the Paulsens gold mine in the Pilbara region while incurring operating costs of about A$5 million (US$5.24 million). The operation produced 8,583 ounces of gold last month and sold 7,897 oz.