- Northern Star Resources (NST) will sell its Paulsens and Western Tanami gold projects to Black Cat Syndicate (BC8) for $44.5 million
- The sale is a cash, script 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
- Northern Star said the sale is expected to be completed in June 2022 and is subject to Black Cat raising at least $25 million
- Northern Star shares up 1.52 per cent, trading at $10.99, while Black Cat is down 0.73 per cent at 68 cents
Northern Star Resources (NST) has agreed to sell its Paulsens gold operation and Western Tanami gold project to Black Cat Syndicate (BC8) for $44.5 million.
Western Tanami is located in the Northern Territory and Paulsens is located west of Paraburdoo in Western Australia. Both mines are currently on care and maintenance.
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 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,” Northern Star Managing Director Stuart Tonkin said.
“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 is expected to be completed in June 2022 and is subject to Black Cat raising at least $25 million.
On the market today, Northern Star shares were up 1.52 per cent, trading at $10.99, while Black Cat were down 0.73 per cent and trading at 68 cents at 12:58 pm AEST.