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Northern Star sells two mines to Black Cat

13th April 2022

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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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.

Edited by Creamer Media Reporter

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