The West

Mark Creasy. Picture: Ben Crabtree/The West Australian.
Mark Creasy. Picture: Ben Crabtree/The West Australian.

Mark Creasy's year is getting better, with the millionaire prospector squeezing $10 million of shares out of Northern Star Resources in return for waiving a pre-emptive right to buy the Jundee gold mine north of Wiluna.

His decision to relinquish the right, a legacy of Mr Creasy's discovery of the Jundee orebody and the asset's subsequent sale in 1995 to Joe Gutnick, removes one of the key hurdles in the way of Northern Star completing the $82.5 million purchase of the mine from Newmont Mining.

It is understood Northern Star had budgeted to pay Mr Creasy about $10 million and is taking confidence from the fact the prospector agreed to take shares, rather than cash. Investors yesterday marked Northern Star shares up 3� to $1.16 to value the company at $671.2 million

Northern Star anticipates settling the Jundee acquisition on July 1, completing a transformational seven-month period for the company since its $25 million purchase of the Plutonic mine.

Mr Creasy has stakes in several miners, led by Sirius Resources. Two weeks ago he received 70.5 million Sirius shares, to double his stake to 34.9 per cent, and $28 million cash in return for handing over his 30 per cent interest in the Nova-Bollinger nickel-copper deposit. His Sirius stake is worth $359 million. Sirius now owns all of Nova-Bollinger.

The West Australian

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