Northern Star Resources has shed the Paulsens and Western Tanami gold projects from its portfolio after divesting the assets to Black Cat Syndicate for $44.5 million. The transaction comprises $14.5 million in cash to be paid at the completion of the sale, $15 million to be paid on June 30, 2023, and $10 million to be paid through four performance-related payments.
In the situation Paulsens achieves both 5000 and 50,000 ounces of refined gold following the sale, $2.5 million will be paid for each milestone. The same goes for Western Tanami. Northern Star will also be issued 8.34 million Black Cat shares at $0.60 per share as part of the transaction.
“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 by June 2022.