Northern Star sells two mines to Black Cat
PERTH (miningweekly.com) – Gold miner Northern Star has struck a A$44.5-million deal to sell its Paulsens and Western Tanami gold projects to fellow listed Black Cat Syndicate.
“The sale of Paulsens, our foundation asset, and the Western Tanami gold project align with Northern Star’s five-year strategic plan to generate superior shareholder returns through active and disciplined portfolio management,” said MD Stuart Tonkin on Wednesday.
“We are delighted that Black Cat, which has a proven track record as a responsible operator and successful explorer, intends to undertake extensive exploration at each operation to provide a potential future redevelopment path for the benefit of all stakeholders.”
Under the terms of the agreement, Northern Star will be paid A$14.5-million in cash for the assets, and will be issued 8.34-million shares in Black Cat, at a deemed price of 60c a share.
The company would also be paid a A$15-million deferred consideration by the end of June next year, and a further A$10-million in cash in a series of contingent payments, linked to future production.
The sale of Paulsens and Western Tanami is expected to complete in June 2022, subject to the satisfaction of conditions including Black Cat raising at least A$25-million through the issue of shares by June 15 and receiving its shareholders’ approval for the issue of Black Cat shares to Northern Star as part of the transaction.
Both Paulsens and Western Tanami are currently on care and maintenance.
Paulsens currently has a total resource estimate of 2.3-million tonnes, grading 2.7 g/t gold for 209 000 oz of contained gold, while Western Tanami has a total resource estimate of 3-million tonnes, grading 5.4 g/t gold for 523 000 oz.
Northern Star told shareholders that it would retain its 50% interest in the Central Tanami joint venture and 100% interest in a portfolio of regional Tanami tenure, where exploration investment continues.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation















