PERTH (miningweekly.com) – Gold miner Northern Star Resources has completed the sale of the Paulsens and Western Tanami gold projects, to fellow-listed Black Cat Syndicate, for A$44.5-million.
Under the terms of the agreement struck in April, Northern Star was paid A$14.5-million in cash for the assets, and would be issued 8.34-million shares in Black Cat, at a deemed price of 60c a share.
The company will 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.
“Paulsens was Northern Star’s foundation asset and contributed immensely to our successful growth into a global gold producer. The dedication of our workforce to establish significant cashflow generation based on Paulsens enabled the future growth of Northern Star to what it is today,” said Northern Star MD Stuart Tonkin.
“Combined with the sale of Western Tanami, this is a good outcome for all and highlights our commitment to active portfolio management and driving shareholder value.”
Paulsens and Western Tanami are non-core to Northern Star’s five-year strategic plan and currently on care and maintenance.
In the Northern Territory, 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.
Black Cat Syndicate MD Gareth Solly on Wednesday said that the company was pleased to have completed this transformational acquisition, welcoming Northern Star as a shareholder.
“With the acquisition of Coyote and Paulsens completed, we will now focus on significant drilling campaigns at both operations to grow and upgrade the current high-grade resources. drilling results from this activity will be released regularly throughout 2022.
“Concurrently, Black Cat’s management team will be assessing the substantial infrastructure and completing studies aimed at demonstrating the inherent value underpinning these established, low-capital restart operations.”