- Black Cat Syndicate (BC8) plans capital raise to buy Northern Star Resources’ (NST) Paulsens and Western Tanami gold projects for $44.5 million
- The company has given no details on how much it is raising or the price at which the shares will be sold
- However, Northern Star said that Black Cat needs to raise at least $25 million
- BC8 shares are in a trading halt until April 19, or when further details about the raise are released to the market, whichever comes first
- Black Cat last traded at 68 cents per share
Black Cat Syndicate (BC8) is planning a capital raise as it buys Northern Star Resources’ (NST) Paulsens and Western Tanami gold projects for $44.5 million.
The company has given no details on how much it is raising or the price at which the shares will be sold, however Northern Star said it needs to raise at least $25 million.
Western Tanami is in the Northern Territory and Paulsens is west of Paraburdoo in Western Australia. Both mines are currently on care and maintenance.
Northern Star released an announcement about the buy earlier on Wednesday.
The sale is a cash, scrip and contingent cash payment, which will include $14.5 million cash to be paid on sale completion, 8.3 million BC8 shares at 60 cents each, $15 million to be paid on June 30, 2023, and $10 million cash in a series of contingent payments.
The sale is expected to be completed in June 2022.
Under the halt, company shares will be halted until Tuesday, April 19, or when further details about the raise are released to the market, whichever comes first.
Black Cat last traded this morning at 68 cents per share.