Shareholders in gold miner Northern Star will be hoping that lightning strikes twice, after managing director Bill Beament revealed what he believes is a ‘‘screaming’’ deal with the world’s biggest gold miner.

In a transaction that bears striking similarities to Northern Star’s wildly successful purchase of the Paulsens mine in 2010, the company has paid $US25 million to Barrick Gold for the Plutonic mine in Western Australia.

Plutonic remained profitable throughout 2013 despite the well publicised slump in the gold price, and is well known to several senior members of the Northern Star team, including Mr Beament, who spent more than eight years working there.

The acquisition is expected to almost double Northern Star’s annual gold production to 200,000 ounces, and the $US25 million price tag includes all the fleet and equipment to run the mine.

‘‘We’ve doubled our production for less than 10 per cent of our market cap, it’s a screaming buy,’’ said Mr Beament on Monday.

Shares climb

After trading around 67¢ over recent days, Northern Star shares have climbed by close to 8 per cent on Monday on the back of the deal, and were fetching 72.5¢ on Monday afternoon.

Plutonic has two years worth of gold reserves still in the ground, and the Northern Star team is confident that can be taken out to seven years on conservative estimates.

Big miners like Barrick are also famous for gold-plating their mines, and Mr Beament said he was confident of reducing Plutonic’s all-in cost of mining below the current $US1110 per ounce.

The benchmark gold price was $US1202 per ounce on Monday.

Ashburton delay

The purchase comes five months after Northern Star delayed development of its Ashburton mine until gold prices recover.

Ashburton was supposed to turn Northern Star into a 200,000 ounce per year miner, but with gold prices showing no signs of recovery, the company has sought to achieve the same goal via the Plutonic acquisition.

Northern Star shares have halved over the past year in a slide that has been exacerbated by weakening gold prices.

But at Monday’s share price of 72.5¢, the stock is still well above the 3¢ it was fetching before the Paulsens purchase.