The Northern Star Resources Ltd share price has risen today up almost 1.5% to $10.98 after announcing a number of non-core asset sales to align with its five-year strategic plan.
The company stated it has entered into an agreement with another gold miner, Black Cat Syndicate Ltd to sell some non-core assets for $44.5 million in cash.
This will be completed as follows:
$14.5 million cash consideration to be paid at sale completion
The issue to Northern Star of 8.34 million fully paid ordinary shares in Black Cat at a deemed issue price of 60 cents per share
$15 million cash consideration to be paid on 30 June 2023 (deferred consideration)
$10 million cash in a series of contingent payments linked to future production post-sale completion
The sale of the Paulsens and Western Tanami projects are expected to be completed in June 2022. However, this is subject to conditions being met. This includes Black Cat raising $25 million by 15 June 2022 and receiving its shareholders’ approval for the issue of Black Cat shares to Northern Star as part of the transaction.
Stuart Tonkin, the Northern Star managing director, stated:
“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.”
Since the beginning of the year, Northern Star shares with sector sentiment rising posted gains of over 16% and boasts a market cap of almost $13 billion.