The Northern Star Resources Ltd (ASX: NST) share price is missing out on the market's gains today after being placed in a trading halt this morning.
Why is the Northern Star share price in a trading halt?
This morning the gold miner requested a trading halt pending an announcement regarding a potential significant transaction. Its shares are expected to remain in the trading halt until December 18.
No details were provided with the release, but the AFR is reporting that Northern Star is raising funds to acquire Newmont Goldcorp's 50% stake in Western Australia's Super Pit mine.
According to the report, Northern Star is believed to have enlisted Canaccord Genuity and Macquarie Group Ltd (ASX: MQG) to help it raise around $700 million. Details in relation to the pricing of the offer are unknown at this stage.
What is the Super Pit mine?
The Super Pit operation is a gold mine in Kalgoorlie-Boulder, Western Australia.
Last month Saracen Mineral Holdings Limited (ASX: SAR) paid US$750 million to Barrick Gold Corporation for the other 50% interest in the asset.
At the time, Saracen's managing director, Raleigh Finlayson, said the completion of the Super Pit acquisition was a key milestone in its growth strategy.
He explained: "The acquisition of a half-share of the Super Pit transforms Saracen into one of Australia's leading gold producers. We now have three long-life assets generating strong cash flow in a Tier-one location. Each asset also has outstanding exploration potential, providing scope to create further value for shareholders through organic growth."
"We are looking forward to partnering with Newmont Goldcorp, which has extensive knowledge of the Super Pit and vast experience in open-pit and underground operations. On behalf of Saracen, I would like to thank Barrick for its co-operation and support throughout the transaction."
It now looks as though Saracen will be partnering up with Northern Star at Super Pit, which has gone down well with Saracen shareholders. In afternoon trade the Saracen share price is up 5% to $2.96.
