Gold Road Resources (ASX: GOR) has confirmed it will vote in favour of Northern Star Resources’ (ASX: NST) $5 billion acquisition of De Grey Mining Limited (ASX: DEG), a transaction set to reshape the nation’s gold sector.
Gold Road, which holds approximately 17.26 per cent of De Grey’s issued shares — valued at around $1.035 billion based on De Grey’s closing price on 11 April 2025 — announced its support ahead of De Grey’s scheme meeting on 16 April 2025.
The company stated it would vote all De Grey shares it holds or controls in favour of the scheme, a move that significantly bolstered the likelihood of shareholder approval.
The scheme, now approved by both De Grey shareholders and the Federal Court of Australia, will see De Grey shareholders receive 0.119 new Northern Star shares for each De Grey share held.
The transaction represents a 37.1 per cent premium to De Grey’s share price at the time of the deal’s announcement and is expected to be implemented on 5 May 2025.
Following completion, Gold Road’s significant stake in De Grey will convert into Northern Star shares.
The company has stated that any decision regarding the future of these shares will be made with a view to maximising value for all Gold Road shareholders.
Market analysts suggest Gold Road may consider selling some or all of its new Northern Star shares to pursue further strategic acquisitions, though the company has not confirmed its intentions.
Gold Road’s principal asset remains its 50 per cent stake in the Gruyere gold mine, a world-class operation in Western Australia’s north-eastern Goldfields, managed in partnership with Gold Fields (JSE: GFI).
The company’s support for the De Grey acquisition underscores its evolving strategy, balancing direct mine operations with strategic investments in high-potential gold assets.
The Northern Star–De Grey transaction consolidates control of the Hemi gold project in the Pilbara — one of Australia’s largest undeveloped gold resources — under Northern Star.
Hemi is forecast to produce 530,000 ounces of gold annually over its first decade, further strengthening Northern Star’s production profile and growth outlook.
Gold Road’s backing of the scheme reflects a broader industry trend towards strategic alliances and consolidation, as Australian gold producers seek scale and operational synergies in a buoyant gold price environment.
