De Grey Mining Limited (ASX: DEG) is an Australian gold exploration and development company, best known for its flagship Hemi Gold Project in Western Australia’s Pilbara region. The company gained industry attention for its significant greenfield discovery, positioning it as a key player in the next generation of large-scale Australian gold producers.
De Grey Mining Limited has received overwhelming shareholder approval for its $5 billion acquisition by Northern Star Resources (ASX: NST), marking one of the largest gold sector takeovers in recent Australian history. The scheme of arrangement, announced in late 2024, will result in Northern Star acquiring 100% of De Grey’s issued shares and gaining full ownership of the world-class Hemi Gold Project in Western Australia. The acquisition underscores the growing trend of consolidation in the Australian gold industry, driven by the race to secure Tier 1 gold assets amid tightening global supply.
Acquisition Terms and Shareholder Support
Under the terms of the agreement, De Grey shareholders will receive 0.119 Northern Star shares for each De Grey share held. The offer represents a 37.1% premium to De Grey’s last trading price prior to the deal’s announcement on November 29, 2024. At the scheme meeting held on April 16, 2025, shareholders voted overwhelmingly in favour of the acquisition.
Strategic Importance of the Hemi Gold Project
At the centre of this acquisition is the Hemi Gold Project, located in Western Australia’s Pilbara region. Discovered by De Grey in 2020, Hemi has since been recognised as one of the most significant greenfield gold discoveries in decades. The project has a resource estimate of 11.2 million ounces and is widely considered a low-cost, long-life asset with production potential exceeding 500,000 ounces per annum.
For Northern Star, acquiring Hemi complements its broader strategy to build a diversified portfolio of Tier 1 gold assets with long mine lives and scalable production. Hemi also offers geographic synergies, with Northern Star already operating significant assets in Western Australia, including the Super Pit in Kalgoorlie and the Jundee operation.
Gold Road’s Endorsement and Industry Consolidation
Gold Road Resources (ASX: GOR), which held a 17.26% strategic stake in De Grey, played a key role in the success of the transaction. In March 2025, Gold Road confirmed it would vote in favour of the acquisition, describing the offer as attractive for De Grey shareholders. Their public endorsement was seen as a decisive factor in achieving the required shareholder threshold for scheme approval. The acquisition also signals broader consolidation within Australia’s gold mining landscape. With fewer large-scale gold discoveries in recent years and a maturing domestic exploration profile, major producers like Northern Star are increasingly pursuing strategic acquisitions to sustain production levels and reduce development risk.
Timetable and Regulatory Approvals
With shareholder approval secured, the next step is final court approval. A second hearing is scheduled for April 22, 2025. If approved, the scheme will become legally effective on April 23, with implementation scheduled for May 5, 2025. De Grey will then be delisted from the ASX, and its place in the S&P/ASX 200 Index will be taken by Generation Development Group (ASX: GDG).
Northern Star has indicated that it will quickly integrate Hemi into its project development pipeline, leveraging its operational experience to optimise mine planning and fast-track construction. The company anticipates releasing an updated feasibility study by late 2025, with initial production possible as early as 2027.
Market Reaction and Outlook
The market has reacted positively to the acquisition, with Northern Star’s shares gaining modestly since the announcement. The deal is seen strategically sound, given Hemi’s scale and the potential for long-term value creation through efficient capital deployment. RBC Capital Markets described the acquisition as “transformational,” adding that it reinforces Northern Star’s position as one of the world’s top ten gold producers.
For De Grey shareholders, the transaction offers immediate value uplift and exposure to a broader, diversified portfolio of producing gold assets through Northern Star stock. It also mitigates the execution and financing risks that De Grey would have faced in developing Hemi independently.
Outlook
Looking ahead, the successful integration of the Hemi Gold Project will be crucial to Northern Star’s growth strategy. With construction likely to begin in 2026, the project is expected to significantly boost Northern Star’s production profile by the end of the decade. For the broader sector, the transaction highlights the premium being placed on high-quality, low-cost gold assets and reflects a shift in focus from organic growth to acquisition-driven expansion. The consolidation trend is likely to continue as producers seek scale, capital efficiency, and resource certainty in an increasingly competitive gold market.
