Windfall Gold Project. Source: Osisko Mining.
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  • Northern Star Resources (NST) signs a funding deal with Quebec-based gold miner Osisko Mining
  • Under the deal, NST will contribute $169 million to Osisko via a convertible senior unsecured debenture
  • In return, the ASX-lister will earn a 50 per cent interest in the Canadian company’s Windfall Gold Project
  • The debenture has a maturity date of December 2025 and NST has the option of converting it at a premium of 125 per cent if it enters into a joint venture with Osisko
  • Northern Star Resources are trading down 0.42 per cent at $9.40

Northern Star Resources (NST) has agreed to fund Quebec-based gold miner Osisko Mining.

Under the subscription agreement and debenture, NST will hand over $169 million to Osisko via a convertible senior unsecured debenture.

In return for the funding, the ASX-lister will be able to earn a 50 per cent interest in the Canadian company’s Windfall Gold Project.

Windfall is located in the Urban Barry Greenstone Belt of Quebec and is described as a high-grade underground gold deposit.

The debenture between Northern Star Resources and Osisko has a maturity date of December 1, 2025.

NST also has the option of converting it at a premium of 125 per cent if it enters into a joint venture with Osisko.

Commenting on the funding deal, Northern Star Resources Managing Director Stuart Tonkin said the agreement offered multiple benefits.

“This agreement gives Northern Star an exclusive right to negotiate to acquire a 50 per cent interest in the Windfall Project,” Mr Tonkin said.

“Partnering with Osisko provides a de-risked entry to a high-quality gold province on an advanced development project and aligns with our strategy.

“A prospective 50/50 JV leverages the skills from both teams to deliver strong
returns for our respective shareholders.”

Shares in Northern Star Resources were trading down 0.42 per cent at $9.40 each at 12:38 pm AEDT.

NST by the numbers
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