Announces Formation Of New Wholly-Owned Royalty Company To Potentially Unlock Value For Shareholders
Nighthawk Gold (TSX: NHK; OTCQX: MIMZF) announces that it has formed a new wholly-owned subsidiary (“RoyaltyCo”), which will focus on acquiring royalty interests, making strategic investments and exploring other accretive opportunities. To start this venture, the Company has granted RoyaltyCo a 2.0% net smelter return royalty (the “NSR Royalty“) on the Colomac Project and the entire regional district-scale Indin Lake Gold Property. The NSR Royalty along with certain cash that Nighthawk plans to transfer to RoyaltyCo will be the initial assets for this new venture.
Nighthawk President and Chief Executive Officer, Keyvan Salehi, commented: “We created RoyaltyCo to potentially generate additional future value for our current shareholders in parallel with continuing to advance and explore the Colomac Project and our district-scale properties in the Northwest Territories. We have the team in place to seek accretive opportunities for RoyaltyCo, and if warranted, deploy capital that will help with the continued growth and value-creation of Nighthawk as a whole. We believe the NSR Royalty has the potential to be a cornerstone asset in RoyaltyCo if we continue to expand the known mineral resources, demonstrate robust economics for the Colomac Project, and make new discoveries through regional exploration. In addition, the new wholly-owned subsidiary enables us to focus and prioritize other avenues for value-creation. If and when market conditions become more favourable, we will consider spinning out RoyaltyCo to create further value for shareholders.”
About Nighthawk Gold Corp.
Nighthawk is a Canadian-based gold exploration company with 100-per-cent ownership of more than 930 square kilometres of district-scale land position within the Indin Lake greenstone gold belt, located approximately 200 km north of Yellowknife, NWT, Canada. The company is advancing several highly prospective exploration targets. The Colomac Centre and Satellite deposits currently have a mineral resource estimate of 58.2 million tonnes grading 1.44 grams per tonne gold for 2.69 million ounces in the indicated category and 19.7 million tonnes grading 2.1 g/t Au for 1.33 million ounces in the inferred category. Nighthawk's experienced management team, with a record of successfully advancing projects and operating mines, is working toward demonstrating the economic viability of the company's assets and rapidly advancing its projects toward a development decision.
Disclaimer: Nighthawk Gold is a paid marketing client*
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