Haha...OK i'll hold of on adding the SFR location heading!! I...

Haha...OK i'll hold of on adding the SFR location heading!! I just wish i had more ready cash as i'd be backing the truck up these current levels.

A quick read of their announcement says that the deal will cost approx $27 mil. Paulsons mine is a low cost producer which instantly gives NSR an annual income of $25 mil per annum. Current market cap = $11,544,014.

Debt will be raised to pay for the producing mine + a small cap raising for short term expenditure reqts.

Ann highlights posted below.It's a no brainer....!!:)never mind the bonus - Ballot win!!

Key Points
Binding agreement to acquire the high grade Paulsens Gold Project
Established Mine Plan of 45,000 oz (Stage 1) expected to generate $25 million surplus cash @ A$1,200/oz
Anticipated cashflow positive from 1st June 2010
Estimated resource of 314kt @ 12.8g/t Au for 128,700 oz
Excellent potential to increase and upgrade resource
Numerous exploration targets in-mine and regionally
Financier Viridian mandated for $19M funding package
NST Managing Director involvement in mine for 4 years
Overview
Northern Star Resources Ltd (ASX: NST V NST) is pleased to announce that it has entered into a legally binding agreement to purchase the Paulsens Gold Mine in Western Australia's Pilbara from Intrepid Mines Limited (IAU), providing an immediate entry to the Australian gold business. Paulsens is a high grade low cost mine which has yielded more than 370,000 ounces at an average cash operating cost of less than A$550/oz since commencing production in 2005.
IAU has recently invested $14 million to extend the mine life for a further 45,000 ounces (Stage 1 mine plan) which NST anticipates will generate surplus cash of $25 million @ A$1,200/oz gold price. NST will be the sole financial beneficiary of this surplus cash from 1st June 2010.
Under the terms of the agreement NST will pay $15 million cash effectively reimbursing IAU for the costs associated with developing the Stage 1 mine plan. NST will also pay a performance based production royalty of $1 million for every 5,000 ounces of gold sold up to a maximum 60,000 ounces, capping the royalty at $12 million. NST assumes all environmental liabilities and obligations.
NST has appointed Viridian Equity Group as lead manager in relation to the proposed funding package. The purchase price will be funded solely through a debt instrument and NST will seek to raise up to $4 million via equity. In addition, NST anticipates raising $6.3 million as further working capital, as a result of shareholders including InvestMet Limited stating their intention to exercise options as necessary to support the acquisition.