At the completion of the sale, Black Cat Syndicate will make a cash payment of A$14.5m and issue 8.34 million of its completely paid ordinary shares to Northern Star
Northern Star Resources has signed an agreement to divest its fully owned Paulsens Gold Operation in Western Australia, and Western Tanami Gold Project in Northern Territory, Australia, to Black Cat Syndicate for $33.2m (A$44.5m).
At the completion of the sale, Black Cat Syndicate will make a cash payment of A$14.5m and issue 8.34 million of its completely paid ordinary shares to Northern Star.
On 30 June 2023, Black Cat Syndicate will make a payment of A$15m in ‘deferred consideration’ and A$10m as contingent payments tied to production in the future, following deal closure.
Northern Star managing director Stuart Tonkin said: “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.
“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 deal is expected to complete in June 2022.
The sale of Paulsens and Western Tanami assets is subject to certain conditions.
One of the conditions requires Black Cat to raise at least A$25m through the issuance of shares by 15 June 2022.
Shareholders’ approval is also required for Black Cat shares issuance to Northern Star.
Currently, the Paulsens and Western Tanami projects are on care and maintenance.