Northern Star Resources removed the Paulsens and Western Tanami gold projects from its portfolio after selling the assets to Black Cat Syndicate for $44.5 million.
The transaction includes $14.5 million in cash payable upon closing of the sale, $15 million payable on June 30, 2023 and $10 million payable through four performance-based payments.
In the situation where Paulsens reaches both 5,000 and 50,000 ounces of refined gold after the sale, $2.5 million will be paid for each milestone. The same goes for Western Tanami.
Northern Star will also receive 8.34 million shares of Black Cat at $0.60 per share as part of the transaction.
“The sale of Paulsens, our core asset, and the Western Tanami gold project aligns with Northern Star’s five-year strategic plan to generate superior returns for shareholders through active and disciplined portfolio management,” said Northern Star’s managing director, Stuart Tonkin.
“We are delighted that Black Cat, which has a proven track record as a responsible operator and successful explorer, intends to undertake in-depth exploration with each operation to provide a potential future avenue of redevelopment for the benefit of all. stakeholders.”
The transfer is subject to various conditions. Black Cat will need to raise at least $25 million through a capital raise by June 15, 2022, while shareholder approval will be required for shares issued to Northern Star as part of the transaction.
The sale is expected to be finalized by June 2022.
Despite the sale, Northern Star will retain its presence in the Tanami region of the Northern Territory. The gold mining company will retain its 50% interest in the Central Tanami joint venture and its 100% interest in a portfolio of Tanami exploration securities.
Paulsens and Western Tanami are currently in care and maintenance.