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REGIONAL ROUNDUP

Northern Star will be hoping
Aussie white it can bring its underground
experience to bare on Osisko
Mining’s Windfall project in
Quebec
knights land

in Canada

ustralian gold miners’ comparative strength to North American investment would help
Apeers was demonstrated again late last year with Northern “de-risk the remaining
Star Resources Ltd and Silver Lake Resources Ltd swooping into work ahead” and reduce
two TSX-listed companies. shareholder dilution.
On December 1, Northern Star announced it had struck a “We are confident that,
convertible funding agreement with TSX-listed miner Osisko subject to reaching
Mining Ltd worth $169 million. an agreement with Silver Lake has taken on the debt
facility of struggling Canadian miner
Osisko’s share price has drifted from more than $4 in November Northern Star on the Harte Gold
2020 to less than $3 just before the agreement was announced, earn-in JV terms, they
making raising the $C544 million required to build its Windfall gold will be a very strong
project in Quebec more difficult. partner in assuring our development plans for the Windfall project,”
he said. “Osisko shareholders can be confident that there should
For Northern Star, the deal allows it to put a footprint on one of
be no significant shareholder dilution needed to successfully bring
the most underexplored gold belts in North America. Osisko has
the Windfall project to production.”
granted Northern Star an exclusive right to negotiate to acquire
up to 50% interest in the Windfall project. Once an acquisition or Silver Lake’s move for Harte Gold Inc represents the West
JV is executed, Northern Star can convert the debenture into a JV Australian miner’s first international foray.
interest in Windfall at a conversion premium of 125%. Harte is owner of the Sugar Zone mine in Ontario but has been
Northern Star managing director Stuart Tonkin said the acquisition struggling to meet debt repayments at the mine, where production
aligned with the company’s growth strategy. began in 2019.
“This agreement gives Northern Star an exclusive right to negotiate Silver Lake has acquired a $US41.3 million non-revolving term
to acquire a 50% interest in the Windfall project,” he said. “A facility and $US22 million revolving facility provided to Harte by
prospective 50/50 JV leverages the skills from both teams to deliver BNP Paribas. The purchase will place it at the front of the creditors
strong returns for our respective shareholders. The Osisko team queue should Harte fail to attract new investment.
are a complementary partner to Northern Star with a proven track The 300,000 tpa operation was expected to produce around
record of discovery and development and a strong commitment to 100,000 ozpa but has consistently failed to deliver. The September
ESG principles.” quarter saw just 15,000oz produced, takings its total for 2021 to
The Windfall project itself is touted as one of the most promising in just 38,000oz.
Canada. An April 2021 PEA highlighted the potential for the project Silver Lake said the transaction would be funded from cash
– which boasts a 1.86 moz @ 9.6 g/t reserve and 4.24 moz @ 8 reserves. While it made no comment on its longer-term intentions,
g/t resource – to produce 238,000 ozpa over an 18-year mine life the company said it would continue discussions with Harte.
(including 300,000 ozpa for the first seven years). “Silver Lake intends to work cooperatively with Harte Gold and
The PEA measured a NPV of $C1.5 billion, IRR of 50.6% and a its stakeholders to deliver an outcome which will provide the best
payback of 2.2 years. opportunity to realise the full potential of the Sugar Zone mine and
Osisko chief executive John Burzynski said Northern Star’s the associated land package,” the company said.

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