Northern Star to sell its Paulsens gold mine and Western Tanami project for $44.5 million
(Kitco News) - Northern Star Resources (ASX: NST), a senior global gold producer, said today that it has entered into binding agreements to sell its Paulsens Gold Operation and Western Tanami Gold Project to Black Cat Syndicate for a total consideration of $44.5 million.
The sale of Paulsens and Western Tanami is expected to complete in June 2022, subject to the satisfaction of conditions including Black Cat raising at least $25 million through the issue of shares by 15 June 2022 and receiving its shareholders' approval for the issue of Black Cat shares to Northern Star as part of the transaction.
According to a press-release, Paulsens and Western Tanami are currently on care and maintenance.
Northern Star added it retains its 50% interest in the Central Tanami Joint Venture and 100% interest in a portfolio of regional Tanami tenure, where exploration investment continues.
Managing Director Stuart Tonkin commented, "The sale of Paulsens, our foundation asset, and the Western Tanami Gold Project align with Northern Star's fiveyear strategic plan to generate superior shareholder returns through active and disciplined portfolio management.
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"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."
Northern Star is a global-scale Australian gold producer that owns and operates three world-class gold production centres (Kalgoorlie, Yandal and Pogo), located in prospective geological settings in the low sovereign risk jurisdictions of Australia and North America.