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Matheson mine developer Moneta proposes merger with NWT gold junior

Moneta-Nighthawk merger could create new Canadian mid-tier company in early 2024
Moneta Gold winter drilling 3
(Moneta Gold photo)

Matheson-area mine builder Moneta Gold aims to substantially grow through a proposed merger with a gold developer in the Northwest Territories.

The Toronto gold company announced Nov. 28 of an agreement to merger with Nighthawk Gold, also a Toronto-based mine developer.

Under the proposed all-share deal, Moneta will acquire all of Nighthawk’s issued and outstanding common shares through a plan of arrangement.

Moneta and Nighthawk shareholders will own 66 per cent and 34 per cent, respectively, of the merged company.

The pitch to shareholders by Moneta interim CEO Josef Vejvoda and Nighthawk President-CEO Keyvan Salehi is the creation of a “stronger Canadian gold developer” that unlocks the value into two large scale and robust cornerstone projects in two emerging mining camps.

Moneta brings to the table its Tower Gold Project, a mine project in the making, valued at $1.1 billion. It has an estimated 11-year mine life with average annual gold production calculated at 261,000 ounces.

Nighthawk’s Colomac Gold Project, north of Yellowknife in the Northwest Territories, is valued at $1.2 billion and offers an 11.2-year mine life with annual production of 290,000 ounces.

Both companies view the merger as a risk adverse strategy to deploy capital and finding efficiencies to advance both projects with a phased development approach.

The board of directors of both companies have unanimously approved this arrangement and recommends their respective shareholders do the same. It’s anticipated that the shareholders vote and the closing of this merger deal will be sometime during the first quarter of 2024.

A company name change with this merger is in the offing but that will take place at the completion of the transaction.

In connection with this merger, Nighthawk is out to raise $12.5 million in financing from the sale of subscription receipts to fund exploration of both projects. The company expects to close that financing on Dec. 19.