Australian gold mining giant Northern Star Resources will swallow up a rival in a deal worth $3.2 billion.
Northern Star said it would acquire full ownership of De Grey Mining along with its undeveloped Hemi mine in the Pilbara region of Western Australia.
The all-share offer values De Grey at about A$5 billion (US$3.2 billion).
Gold prices are up about 30% so far this year.
"De Grey's Hemi development project will provide a low-cost, long-life, large-scale gold mine," noted Northern Star CEO Stuart Tonkin.
In late morning trading on the Australian Securities Exchange, shares in Perth-based Northern Star fell 5.5 percent, while De Grey, also based in Perth, rose 31 percent. | BGNES, AFP
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