Australia's Northern Star gains on potential JV in Canadian gold project

Osisko Mining

01/12/2021 04:42

** Shares of Northern Star Resources  NST.AX  rise as much
as 1.4% to A$9.57, even as gold prices hover close to a
one-month low 
    ** Gold explorer says it subscribed for a convertible
debenture in Canadian mineral explorer Osisko Mining Inc
 OSK.TO  for C$154 mln ($120.88 mln)  urn:newsml:reuters.com:*:nASX3CGPFP
    ** Says Osisko granted NST an exclusive right to negotiate
an interest of to 50% in its Windfall gold project in Quebec,
Canada
    ** Adds that upon execution of any acquisition and JV
agreement, NST will be entitled to convert debenture into a JV
interest in the Windfall Project at a 125% premium
    ** RBC Capital Market says that if a JV agreement is
reached, Windfall project would add to overall quality of NST's
asset portfolio
    ** RBC says terms of the debenture are structured such that
a negotiated JV agreement is the best outcome for NST
    ** "The two parties would bring complementary skillsets to a
potential JV" - RBC
    ** Stock down 25.6% this year, as of last close
   
($1 = 1.2740 Canadian dollars)

 (Reporting by Harish Sridharan in Bengaluru)
 ((harish.sridharan@thomsonreuters.com))