A key condition of the $82.5 million purchase of Jundee from Newmont Mining was the waiving of the pre-emptive right.

Northern Star has been unable to name the third party due to confidentiality agreements with Newmont.

The company will issue the third party $10 million worth of shares at the volume-weighted average price in the 10 days before completion of the deal.

The shares will be escrowed for six months.

Northern Star expects to complete the financing condition by June 26, allowing the deal to be completed on July 1.

“We are delighted with the terms on which we have acquired Jundee,” Northern Star managing director Bill Beament said.

“The project will contribute about 200,000 ounces per annum to our total output and help ensure we meet our targeted all-in sustaining cost of less than $1050 per ounce.”

The Jundee deal and others completed this year will boost Northern Star’s annual production to 550,000ozpa gold.

Northern Star also acquired the Kundana, Kanowna Belle and Plutonic mines this year from Barrick Gold for $100 million.

The company reported today that production for May jumped 32% over April as it continued the integration of the new assets.

The three new mines plus the Paulsens operation produced 41,668oz gold in May.

“We set aggressive targets at the time of the acquisitions and these results demonstrate clearly that we are not only meeting them, we are exceeding them,” Beament said.

“Not only are we experiencing no difficulties in bedding down the assets but we are seeing the benefits of introducing our productivity drive to them.”

Beament said the successful integration of the Barrick assets gave the company confidence in bedding down the Jundee acquisition.

“This success is the direct result of the team that we built ahead of making the acquisitions and the excellent acceptance of the incumbent workforce adopting Northern Star as a company,” he said.

“That approach meant we could implement our operating methods and efficiency drive immediately [when] we were in the door.”

Northern Star plans to release more details on its strategy, as well as updated reserves and resources at the end of July.

Shares in Northern Star rose by 2.2% to $1.155.