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clock Created with Sketch. 01/05/25
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Originally posted by mtg:
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Northern Star Resources (ASX: NST) today announced that it will sell its wholly-owned Paulsens gold operation and Western Tanami gold project to Black Cat Syndicate (ASX: BC8) for $44.5 million – in line with its five-year strategic plan to divest non-core assets.The company announced it had entered into binding agreements for a total cash, scrip and contingent cash payment consideration of 44.5 million comprising:$14.5 million cash consideration to be paid at sale completion;the issue to Northern Star of 8,340,000 fully paid ordinary shares in Black Cat at a deemed issue price of $0.60 per share;$15 million cash consideration to be paid on 30 June 2023 (Deferred Consideration);$10 million cash in a series of contingent payments linked to future production post-sale completion:$2.5 million cash on production of 5,000 ounces of refined gold from Paulsens;$2.5 million cash on production of 5,000 ounces of refined gold from Western Tanami;$2.5 million cash on production of 50,000 ounces of refined gold from Paulsens; and$2.5 million cash on production of 50,000 ounces of refined gold from Western Tanami.Northern Star Managing Director Stuart Tonkin said: “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.“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.”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 $25 million through the issue of shares by 15 June 2022 and receiving its shareholders’ approval for the issue of Black Cat shares to Northern Star as part of the transaction.Paulsens and Western Tanami are currently on care and maintenance.Northern Star retains its 50% interest in the Central Tanami Joint Venture and 100% interest in a portfolio of regional Tanami tenure, where exploration investment continues.
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Hi mtg
(20min delay)