Northern Star Resources (ASX: NST) has received a major vote of confidence in the company's operations from the Australian fund manager Paradice Investment Management - which after a transaction has boosted its stake in Northern Star to 6.3%.
Wyllie Group has also become a significant shareholder with a 3% stake.
The transaction revolved around Northern Star's largest shareholder, InvestMet Limited, which exercised 20.6 million options, injecting $1.54 million into Northern Star as a result.
InvestMet has also sold 10 million Northern Star shares, taking its total holding to 65.5 million shares, or 17.5% on a fully diluted basis.
Some of the shares that resulted from this transaction have been acquired by Paradice.
The proceeds of this sale have been used to fund InvestMet's early exercise of options and its tax liability resulting from its Northern Star investment.
Several directors, including managing director Bill Beament, have also restructured their holdings in Northern Star by exercising options - while selling shares to fund the option payment.
Post the combined transactions, $2.1 million will have been injected into Northern Star, with 337 million shares on issue and 39 million options.
A further 7 million options are expected to be exercised before they expire on the 4th September 2011.
Paulsens hits 100,000 gold ounce poured milestone
Earlier in the month Northern Star reached a major milestone at Paulsens since taking financial ownership in June 2010, with 100,000 gold ounces poured.
In July 8,650 ounces were poured, putting the company on track to exceed the 2011 forecast of $40 million in surplus cash and 75,000 ounces produced.