North of 60 Mining News - The mining newspaper for Alaska and Canada's North

Nighthawk Gold Corp. Jan. 29 announced that its merger with Moneta Gold Inc. is on track for completion on Feb. 6.

First announced in late November, the merger would result in a stronger gold exploration company with two Canadian projects in the near development stage, Nighthawk's Colomac gold project on the Indin Lake property in Northwest Territories and Moneta's Tower gold project in Ontario.

A preliminary economic assessment prepared for Nighthawk last April outlines plans for a mine at Colomac that would produce an average of 290,000 oz of gold annually over 11 years of mining.

At a base case price of US$1,600/oz gold, this operation is expected to generate an after-tax internal rate of return of 42% and an after-tax net present value (5% discount) of C$1.17 billion (US$860 million).

A PEA prepared for Moneta in 2022 outlines plans for a mine at Tower that would average more than 190,000 oz of gold annually for 11 years.

At a base case price of US$1,600/oz gold, this operation is expected to generate an after-tax internal rate of return of 32% and an after-tax net present value (5% discount) of C$1.07 billion (US$800 million).

"We believe that the transaction presents an exciting opportunity to create a leading gold development company by bringing together two cornerstone assets in Canada," Nighthawk President and CEO Keyvan Salehi and Moneta interim CEO Josef Vejvoda said in a joint statement announcing the merger. "The combined company will benefit from a strong balance sheet, led by a skilled leadership team, and a high-quality portfolio anchored by two robust, large-scale assets in established and emerging mining camps."

Moneta Gold Inc.

In December, Nighthawk raised C$13 million (US$9.7 million) to help fund the merged company.

Under the terms of the merger, Nighthawk shareholders will receive 0.21 Moneta shares for each Nighthawk share they hold. As a result, current Nighthawk and Moneta shareholders will own 34% and 66% percent, respectively, of the merged company to be renamed STLLR Gold Inc.

Vejvoda will serve as chairman, and Salehi will serve as president and CEO of STLLR.

Nighthawk and Moneta shareholders have each overwhelmingly voted in favor of the merger, and the Ontario Superior Court has approved the combination.

Moneta and Nighthawk expect that the STLLR merger will be finalized on Feb. 6.

Author Bio

Shane Lasley, Publisher

Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.

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