Sixty North closes $3.6-million term loan with Vesta

Executive Summary

• Sixty North Gold Mining Ltd. has closed a $3.6-million term loan from Vesta Wealth Partners Ltd. to fund the restart of operations at its Mon gold mine.
• The financing includes equity warrants, a net smelter return royalty, and board representation for the lender.
• Funds are designated for mobilizing a new mill, installation, commissioning, and reaching first gold pours, with the goal of producing 100 tonnes per day of feed.

Key Details

• Transaction Structure: Closed $3.6-million term loan from Vesta Wealth Partners Ltd.
• Repayment Terms: Repayable within 36 months of closing; no principal payments required until December 2026.
• Interest Rate: 12% per annum on any outstanding principal.
• Equity Component: Issuance of 6.65 million share purchase warrants to Vesta, exercisable at $0.14 per warrant for a period of three years following issuance.
• Royalty Terms: 2.5% net smelter return (NSR) royalty on activities at the Mon gold mine for a minimum of four years, subject to a buyback option for up to $5 million.
• Security: Sixty North Gold provided a first-ranking senior security interest over the Mon gold mine.
• Governance: Appointment of two qualified nominees from Vesta to the board of directors during the loan term.
• Use of Proceeds: Costs to mobilize the new mill to site, complete installation and commissioning, and reach first gold pours.
• Operational Targets: Mine designed to produce 100 tonnes per day (tpd) of feed to a recently purchased gravity flotation mill.
• Project Status: Mon gold mine is located 45 km north of Yellowknife, NWT; expected to be the only operating gold mine in the Northwest Territories. First mine started in the Yellowknife gold belt since the Discovery mine in 1948 (excluding initial 1990s development).
• Historical Production Context: Past production in the 1990s extracted 15,000 tonnes of ore to depths of 15 meters, recovering an estimated 15,000 ounces of gold. Average grade historically averaged 30 g/t.
• Technical Report Reference: NI 43-101 technical report dated August 3, 2023.

Notable Quotes

• Dave Webb, President and CEO: "The Mon gold mine is designed to produce 100 tpd of feed to our recently purchased mill. These funds are expected to cover the costs to mobilize our new mill to site, complete installation and commissioning, and see us to our first gold pours."
• Jared Wolk, Chief Investment Officer, Vesta: "We are pleased to close this financing and move forward into the execution phase of the Mon gold mine restart. Vesta's commitment to Sixty North Gold is rooted in our belief in the high-grade potential of the Yellowknife gold belt and the disciplined operational approach taken by Dr. Webb and his team."