Nighthawk Gold Corp. (TSX: NHK) closed its previously announced “bought deal” subscription private placement made in connection with the planned merger with Moneta Gold Inc.
The company announced on Tuesday that it issued approximately 38 million subscription receipts at CAD$0.34 per receipt and raised a total of CAD$13 million.
Once the transaction is completed, the new company will use the proceeds to explore and develop the Tower Gold Project and Colomac Gold Projects.
The merger between Nighthawk and Moneta combines two large-scale Canadian gold projects with robust project economics. The new company will boast 7.8 million gold ounces indicated and 10 million gold ounces inferred in mineral resources.
The Tower Gold Project’s preliminary economic assessment (PEA) shows a CAD$1.1-billion after-tax net present value (NPV) at a 5% discount rate and a 32% after-tax internal rate of return (IRR), assuming a USD$1,600 per ounce gold price.
It anticipates an average potential production profile of 261,000 ounces per year over the first 11 operating years. Similarly, the Colomac Gold Project’s PEA outlines economics that yield a $1.2-billion NPV and a 35-per cent IRR. This is based on the same gold price assumption with an average potential production profile of 290,000 ounces per year over its 11.2-year life of mine.
The Nighthawk merger will bring the ability to unlock general and administrative and operational efficiencies with seasonal workflow sequencing and staggered and phased project development. The management team intends to leverage cross-project experiences for collaborative studies advancement, permitting, and project derisking.
@NighthawkGold Closes C$13.0 Million Bought Deal Equity Financing: https://t.co/5WGWInVTKG$NHK.TO #gold #goldmining #investingold #goldinvesting #goldstocks #goldexploration #nwt #mining #inflation #commodities #sustainable #empower #communities #togetherwithNHK #preciousmetals… pic.twitter.com/tbOSsc1Yok
— Nighthawk Gold Corp. (@NighthawkGold) December 19, 2023
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Canada has been home to a number of notable acquisitions in 2023
There’s little wonder as to why Canada continues to be a hotspot for gold.
Not only is there an abundance of the resource, but it boasts a political stable environment, transparent regulations and strong mining infrastructure.
The country’s commitment to responsible mining practices and its reputation as a responsible gold producer also contribute to its appeal.
The Canadian gold mining sector has seen a number of acquisitions and mergers in 2023. For example, Canadian junior mineral explorers Barsele Minerals (TSXV: BME) and Gold Line Resources (TSXV: GLDL) agreed earlier this month to join forces to create a Scandinavian-focused district-scale gold exploration and development company.
The combined company will have a gold portfolio that includes the advanced stage Barsele gold project located in the mining region of Västerbottens Län, Northern Sweden.
In November, Calibre Mining Corp. (TSX: CXB) (OTCQX: CXBMF) and Marathon Gold Corp. (TSX: MOZ) completed a business combination, creating a mid-tier gold producer expected to achieve high-margin and high-growth status. The combined company is projected to have an estimated average annual production of around 500,000 ounces from 2025 to 2026.
B2Gold Corp.‘s (TSX: BTO) (NYSE: BTG) (NSX: B2G) April 2023 acquisition of Sabina Gold & Silver represents another significant Canadian merger in the gold sector.
The company picked up the Goose Project in Nunavut during its acquisition. In June, the company estimated a construction cost of CAD$800 million for the Sabina acquisition.
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