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NEWS

A Superior offer

Chris Bradbrook doesn’t Bradbrook said the com-
believe Australian play- pany would continue to look

ers missed an opportunity to at other potential acquisi-

buy the underrated Plutonic tions in Australia and else-

gold mine, rather the offer where.

tabled by Superior Gold Inc Superior’s interest in

was better than whatever Plutonic and fellow Cana-

else Northern Star Resourc- dians Kirkland Lake Gold

es Ltd was being presented. Ltd’s $C1 billion takeover

“Northern Star ran a of Newmarket Gold in 2016

process where they were for the Fosterville (140,000-

maybe looking at selling it, 145,000oz gold in FY2017)

divesting it, so I don’t think and Cosmo (60,000-

it was the local guys that 65,000oz FY2017 guid-

lost the opportunity, it was ance) mines has reignited

more the structure that we North American interest in

offered Northern Star was assets down under.

more attractive to them. I “I would say that story

think we offered them a rea- Northern Star retains exposure to the Plutonic gold mine through [Kirkland Lake] would have
sonable value upfront as a a 19.7% shareholding in Canadian outfit Superior Gold got North American and in-
big shareholder to increase vestors, not just Canadian

that value over time,” Superior president Immediate plans are for Superior to but American investors also, actually

Chris Bradbrook told Paydirt. have Plutonic performing at a nomi- paying a lot of attention to Australian as-

“That was something I don’t think nal 80,000 ozpa gold, with a target of sets,” Bradbrook said.

anyone else offered. The North Ameri- 100,000 ozpa production the objective Time will tell which Australian asset

can market is very attuned to the ability from a mine which has run for almost 30 or company is next in line to be cherry-

to take these assets when no-one else years and churned out more than 5 moz picked by a cashed-up North American

cares about them and put them in the gold. group, however, companies down under

hands of one company and they make In the first two quarters running under hoping to attract that particular atten-

them work. I actually don’t think the lo- the Superior banner, more than 43,000oz tion should be aware that assets offering

cal guys missed an opportunity, I’d like gold was produced from Plutonic. good value are not limited to Australia.

to think that it was us actually pitching a “We have been thrilled with it. We “I think Canadians tend to look at the

better deal to Northern Star.” haven’t hired anyone new, we have the quality of the asset opposed to where it

Superior listed on the TSX-V earlier same Northern Star employees running is,” Bradbrook said.

this year after raising $32 million in an it. I can’t claim any credit with how the “Obviously, Australia is the second

IPO eight times oversubscribed, with operation is working, it is all down to the largest producer in the world, so the first

the key asset being Plutonic which was operating team,” Bradbrook said. reaction to our acquisition of Plutonic was

acquired in October 2016. The company “We see lots of opportunity to make ‘why would the Australians not want it?’.

also has the Hermes gold project and an Plutonic something more, something You do have to get over that but beyond

interest in the Bryah Basin JV, both of bigger and something better; that is our that assets are where they are, Australia

which are south-west of Plutonic. primary focus. However, you have to be is a great place for gold assets, a great

Under the Plutonic acquisition terms, opportunistic and aware of what is out place to do business and I think there are

Northern Star holds a 19.7% interest in there and what might be available. We lots of similarities between the Australian

Superior, with the latter on a promise to are always looking at other things but we and Canadian miners and it’s an area I

extract maximum value from the West think Plutonic is such an undervalued as- am very comfortable working in.”

Australian gold mine. set that there is lots of opportunity there.” Bradbrook is also at ease with Supe-

rior’s single listing on the TSX-V for now,
The future of the Super Pit in Kalgoorlie remains uncertain, with Shandong Tyan however, an Australian listing is “clearly
Home pulling out of talks regarding the purchase of Barrick Gold Corp’s 50% stake in something to look at in the future” for the
Australia’s largest open pit gold mine.
company, he said.
It has been reported the companies were negotiating a deal based on a price of
“We have a great share registry from
$US1.3 billion for Tyan Home to join Newmont Mining Corp in ownership of the Super North America and Europe but there are
Pit. lots of people in North America and Eu-
In an announcement to the Shanghai Stock Exchange, Tyan Home cited China’s rope that don’t own us yet, so until we
tightening of regulations concerning outbound investments as a reason for ending the have a broader share registry in North
talks.
America we’re happy where we are now.”
The decision is bittersweet for Barrick after it did a deal in April with Shandong Gold
Group for the 50% sale of Veladero, San Juan province, Argentina, for $US960 million. – Mark Andrews

Barrick and Shandong will also work together to explore the joint development of the

Pascua-Lama deposit, Chile, and evaluate additional investment opportunities in the El

Indio gold belt on the border of Argentina and Chile.

AUSTRALIA’S PAYDIRT MAY 2017 PAGE 5