Australian gold producer Northern Star Resources has agreed to sell its wholly owned Paulsens Gold Operation (Paulsens) in Western Australia, and Western Tanami Gold Project (Western Tanami) in Northern Territory, Australia, to Black Cat Syndicate for $33.2m (A$44.5m).
Black Cat Syndicate will pay A$14.5m in cash at the completion of the sale and issue 8,340,000 of its fully paid ordinary shares to Northern Star.
It will also pay A$15m in ‘deferred consideration’ on 30 June 2023, as well as A$10m in contingent payments linked to future production upon completion of the deal.
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.”
Planned to be completed in June 2022, the sale of Paulsens and Western Tanami assets is subject to conditions, including raising at least A$25m by Black Cat through the issue of shares by 15 June 2022.
It also awaits shareholders’ approval for the issue of Black Cat shares to Northern Star.
The Paulsens and Western Tanami projects are currently on care and maintenance.
Last year, Northern Star announced the sale of its Kundana gold assets in Western Australia to Evolution Mining for A$400m.