Said article:The duo of Azure Capital and Morgan Stanley Smith...

Said article:



The duo of Azure Capital and Morgan Stanley Smith Barney have made it three in a row after securing the mandate to place at least $67.5 million worth of Northern Star Resources shares.

It is thought much of the stock, comprising new equity and some of biggest shareholder Michael Fotios’ holding, will be sold to UK investors to introduce institutions to Northern Star’s share register.


Northern Star would not comment on the raising yesterday but halted trading in its shares at $1.08.

It is understood Northern Star is issuing 50 million new shares at 90¢ while Mr Fotios is looking to sell at least 25 million shares at 90¢, which would reduce his stake from 24 per cent to under 15 per cent.

Northern Star shares have soared more than 12 per cent this week, prompting a “please explain” from the Australian Securities Exchange and sparking speculation about possible corporate activity.

It marks the third WA gold fund-raising under way by Azure and Perth’s Morgan Stanley office, joining a $20 million equity placement for Noble Mineral Resources and a $20 million recapitalisation of Apex Minerals.

Northern Star sources have rejected speculation Morgan Stanley was packaging up the three companies as one investment proposal for London-based institutions.

Northern Star’s move surprised some analysts because the debt-free Pilbara gold producer has about $40 million cash. Managing director Bill Beament has plans to aggressively grow the company, including through acquisitions.