Allens advises on financing Kalgoorlie Super Pit

Allens has advised the bank group to Northern Star Resources Limited (Northern Star) on the provision of new and existing debt facilities to fund the $1,160 million acquisition of Newmont Goldcorp Australia’s 50% interest in Kalgoorlie Consolidated Gold Mines Pty Ltd (KCGM) and associated assets.

The bank group provided a new $400 million, 4-year term debt facility and renewed an existing revolving facility for three years which increased to $300 million.

In addition to the provision of debt facilities, Northern Star funded the acquisition with the proceeds of a $765 million equity raising.

Following completion on 3 January 2020, KCGM is now a 50:50 joint venture between Northern Star and Saracen Mineral Holdings Limited and includes the Kalgoorlie Super Pit, amongst other deposits, located approximately 600km east of Perth, Western Australia.

‘Acquiring a 50% stake in the Kalgoorlie Super Pit, gives Northern Star 50% ownership of one of the most significant, tier-1 gold mines in the world. We were delighted to advise the lenders to Northern Star on the provision of debt facilities to assist in funding the transaction,’ said Partner Ben Farnsworth.

‘We are grateful to be able to support Northern Star’s banks in their continued strong support for Northern Star,’ he said.

Wright Legal advised Northern Star on the debt financing for the acquisition.

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