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Northern Star completes note offering

12th April 2023

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Gold miner Northern Star Resources has closed its $600-million senior guaranteed notes offering, with the notes due in April 2033.

The company previously said that it would use the proceeds from the notes for general working capital, which could include the expansion of the Kalgoorlie Consolidated Gold Mines (KCGM), if and when a final investment decision is made.

The company last year released a prefeasibility study (PFS) on the expansion of KCGM production, which investigated three options, increasing capacity from the currently 13-million tonnes a year, to 17-million tonnes a year through a bolt-on expansion, or 24-milion tonnes a year through the refurbishment of 70% of the process plant, or expanding it to 22-million tonnes a year through a total rebuild.

The PFS found that all three mill expansion options were financially compelling, delivering internal rates of return of between 13% to 26%, and pay-back periods of between three to five years, with capital costs estimated at between A$440-million and A$1.4-billion.

With the expansion of the mill, gold production from KCGM could grow between 100 000 oz/y and 200 000 oz/y, while all-in sustaining costs could reduce by up to A$200/oz.

Edited by Creamer Media Reporter

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