In morning trade the Northern Star Resources Ltd (ASX: NST) share price is pushing higher following an update on its Super Pit acquisition.
At the time of writing the gold miner's shares are up just over 1% to $11.40.
What did Northern Star announce?
This morning Northern Star announced that it has successfully completed the acquisition of all the shares in Kalgoorlie Lake View from Newmont Goldcorp Corporation.
Kalgoorlie Lake View holds a 50% interest in Kalgoorlie Consolidated Gold Mines, which is home to the Kalgoorlie Super Pit gold mine.
Northern Star paid a total of US$800 million for Kalgoorlie Lake View.
What is the Super Pit?
The Kalgoorlie Super Pit is a highly rated gold mine which is co-owned by Saracen Mineral Holdings Limited (ASX: SAR).
Last month Northern Star raised A$765 million at $9.00 per share through a heavily over-subscribed institutional placement to fund the acquisition.
Northern Star's Executive Chairman, Bill Beament, has previously spoken very positively about the asset and the impact it will have on the business.
Following the successful institutional placement, he said: "The strong support for this equity raising reflects the outstanding benefits of the KCGM acquisition for Northern Star Shareholders. The deal is earnings-accretive for Northern Star from the first full financial year of ownership and it will immediately increase our free cashflow. The acquisition also comes with huge growth potential via further optimisation of the open pit and the development of underground operations."
One broker that appears happy with the acquisition is Ord Minnett. According to a note last month, it has retained its buy rating and lifted its price target to $11.90.
It believes this acquisition could help Northern Star achieve a production rate of ~1.5 million ounces of gold per annum by FY 2024.
