August 30, 2018 / 12:18 AM / 3 months ago

Australian gold miner Northern Star Resources to buy Alaskan gold mine for $260 mln

Aug 30 (Reuters) - Australia’s Northern Star Resources Ltd said on Thursday it will acquire an underground gold mine in the United States for $260 million from Sumitomo Metal Mining Co and Sumitomo Corp.

Northern Star said it would acquire the Pogo Gold Mine located southeast of Fairbanks city in the state of Alaska.

“Pogo is a world-class project with an 8 million ounce (Moz) gold endowment, producing 3.8 Moz at 13.6 grams per tonne over the past 12 years at an average rate of about 300,000 ounces per annum,” Northern Star Executive Chairman Bill Beament said.

The company plans to fund the acquisition through cash reserves and by raising about A$175 million ($128 million) through a placement.

Taking into account production from Pogo, Northern Star upgraded its fiscal 2019 guidance to 850,000 to 900,000 ounces at an all-in sustaining cost of A$1,050-A$1,150 per ounce. ($1 = 1.3678 Australian dollars) (Reporting by Susan Mathew in Bengaluru; editing by Richard Pullin)

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