Matheson mining developer Moneta proposes merger with NWT Gold Junior

Matheson-area miner Moneta Gold plans to grow significantly through a planned merger with a gold developer in the Northwest Territories.

The Toronto gold company announced on November 28 an agreement to merge with Nighthawk Gold, a mining developer also based in Toronto.

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 percent and 34 percent, respectively, of the combined company.

Moneta Interim CEO Josef Vejvoda and Nighthawk President and CEO Keyvan Salehi have proposed to shareholders to create a “stronger Canadian gold developer” that will unlock the value of two large and robust cornerstone projects in two emerging mining districts .

Moneta brings to the table its Tower Gold Project, a mining project in the pipeline valued at $1.1 billion. The mine life is estimated to be 11 years, with average annual gold production at 261,000 ounces.

Nighthawk’s $1.2 billion Colomac gold project north of Yellowknife in the Northwest Territories has a mine life of 11.2 years with annual production of 290,000 ounces.

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

The boards of directors of both companies have unanimously approved this agreement and are recommending that their respective shareholders do the same. The shareholder vote and closing of this merger agreement is expected to occur sometime in the first quarter of 2024.

A change in the company name is planned with this merger, but this will occur after the transaction is completed.

In connection with this merger, Nighthawk seeks to raise $12.5 million in financing from the sale of subscription receipts to fund exploration for both projects. The Company expects to close this financing on December 19th.