Nighthawk Gold Announces Formation of New Wholly-Owned Royalty Company to Potentially Unlock Value for Shareholders
September 12 2022 - 5:00PM
Business Wire
Nighthawk Gold Corp. (“Nighthawk” or the
“Company”) (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
Nighthawk is a Canadian-based gold exploration company with 100%
ownership of more than 930 km2 of district-scale land position
within the Indin Lake Greenstone Gold Belt, located approximately
200 km north of Yellowknife, Northwest Territories, Canada. The
Company is advancing several highly prospective exploration
targets. The Colomac Gold Project currently has a Mineral Resource
Estimate of 58.2 million tonnes grading 1.44 g/t Au for 2.69
million ounces in the Indicated category and 19.7 million tonnes
grading 2.10 g/t Au for 1.33 million ounces in the Inferred
category.1 Nighthawk’s experienced management team, with a track
record of successfully advancing projects and operating mines, is
working towards demonstrating the economic viability of its assets
and rapidly advancing its projects towards a development
decision.
Forward-Looking Information
This news release contains "forward-looking information" within
the meaning of applicable Canadian securities legislation.
Forward-looking information includes, but is not limited to,
information with respect to the value of the NSR Royalty, the
transfer of cash to RoyaltyCo, the mandate and success of
RoyaltyCo, future growth potential for Nighthawk and RoyaltyCo,
anticipated benefits of the transactions, the spinning out of
RoyaltyCo as a separate entity, receipt of required approvals, and
the Company’s exploration initiatives. Generally, forward-looking
information can be identified by the use of forward-looking
terminology such as “advancing”, “working towards”, "plans",
"expects", or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates", or
"does not anticipate", or "believes" or variations of such words
and phrases or state that certain actions, events or results "may",
"could", "would", "might", or "will be taken", "occur", or "be
achieved".
Forward-looking information is based on the opinions and
estimates of management at the date the information is made, and is
based on a number of assumptions and is subject to known and
unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of
Nighthawk to be materially different from those expressed or
implied by such forward-looking information, including risks
associated with required regulatory approvals, the exploration,
development and mining such as economic factors as they effect
exploration, future commodity prices, changes in foreign exchange
and interest rates, actual results of current exploration
activities, government regulation, political or economic
developments, the war in Ukraine and its effect on supply chains,
environmental risks, COVID-19 and other pandemic risks, permitting
timelines, capital expenditures, operating or technical
difficulties in connection with development activities, employee
relations, the speculative nature of gold exploration and
development, including the risks of diminishing quantities of
grades of reserves, contests over title to properties, and changes
in project parameters as plans continue to be refined as well as
those risk factors discussed in Nighthawk's annual information form
for the year ended December 31, 2021, available on www.sedar.com.
Although Nighthawk has attempted to identify important factors that
could cause actual results to differ materially from those
contained in forward-looking information, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such information will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such information.
Accordingly, readers should not place undue reliance on
forward-looking information. Nighthawk does not undertake to update
any forward-looking information, except in accordance with
applicable securities laws.
______________________________ 1 For more information on the
Mineral Resource Estimate (“2022 MRE”) please refer to the
March 8, 2022 news release and in the Company’s NI 43-101 technical
report entitled “NI 43-101 Technical Report and Update of the
Mineral Resource Estimate for the Indin Lake Gold Property,
Northwest Territories, Canada” and dated March 31, 2022
(“Technical Report”), which is available on SEDAR
www.sedar.com and on the Company’s website at
www.nighthawkgold.com. John McBride, Vice President of Exploration
of Nighthawk, who is the “Qualified Person” as defined by NI
43-101, has reviewed, and approved of the scientific and technical
disclosure contained in this news release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220912005369/en/
FOR FURTHER INFORMATION PLEASE CONTACT: NIGHTHAWK GOLD
CORP. Tel: 1-416-880-7090; Email: info@nighthawkgold.com Website:
www.nighthawkgold.com
Keyvan Salehi President & CEO
Michael Leskovec CFO
Allan Candelario VP, Investor Relations & Corporate
Development
Nighthawk Gold (TSX:NHK)
Historical Stock Chart
From Jun 2024 to Jul 2024
Nighthawk Gold (TSX:NHK)
Historical Stock Chart
From Jul 2023 to Jul 2024