Northern Star Resources, an Australian gold mining company, announced that it has closed the deal to buy the Pogo gold mine in Interior Alaska.
Northern Star Resources paid $260 million to buy this high-grade underground operation from a joint venture between Japanese mining firms Sumitomo Metal Mining Company, 85 percent, and Sumitomo Corporation, 15 percent.
As a result, the company expects to acquire roughly 4.1 million ounces of gold in resources and reserves at Pogo for $63 per ounce of gold and get an established underground mining operation.
As such, Pogo is expected to add at least 250,000 ounces to Northern Star's fiscal year 2019, which also begins on July 1, production at a cost of about $880 per ounce. With this as the starting point, Northern Star plans to carry forward Pogo's legacy of consistent high-grade gold production at a competitive all-in sustaining cost into the future.