Gold Road backs Northern Star’s acquisition of De Grey Mining

The news: Miner Gold Road Resources says it will back Northern Star Resources' acquisition of De Grey Mining at a shareholder vote on 16 April.

The numbers: Northern Star Resources announced its $5 billion acquisition proposal of De Grey Mining in December. Gold Road holds a 17.26% stake in the target company which is set to be converted into shares in Northern Star.

The context: Gold Road said it is supportive of the scheme and will vote all De Grey shares it holds or controls in favour of the proposal. If the deal is approved by De Grey shareholders on 16 April, a second Federal Court hearing is expected on 5 May. De Grey owns the Hemi project in Western Australia, one of the world's largest undeveloped gold projects in a Tier-1 mining jurisdiction.

“Any decision Gold Road makes regarding the Northern Star shares it will receive if the scheme completes will be made with a view to maximising value for all Gold Road shareholders,” Gold Road said in a statement.