StrikePoint Gold Sets October 2 Consolidation Ahead of Newmont Northumberland Deal

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1. Disclosure for the quote from the John Newell article published on August 11, 2025

1. For the quoted article (published on August 11, 2025), StrikePoint paid Street Smart, an affiliate of Streetwise Reports, US$2,000.
2. Author Certification and Compensation: [John Newell of John Newell and Associates] was retained and compensated as an independent contractor by Street Smart for writing this article. Mr. Newell holds a Chartered Investment Management (CIM) designation (2015) and a  U.S. Portfolio Manager designation (2015). The recommendations and opinions expressed in this content reflect the personal, independent, and objective views of the author regarding any and all of the companies discussed. No part of the compensation received by the author was, is, or will be directly or indirectly tied to the specific recommendations or views expressed.

John Newell Disclaimer

As always it is important to note that investing in precious metals like silver carries risks, and market conditions can change violently with shock and awe tactics, that we have seen over the past 20 years. Before making any investment decisions, it's advisable consult with a financial advisor if needed. Also the practice of conducting thorough research and to consider your investment goals and risk tolerance.

2. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

StrikePoint Gold Inc. (SKP:TSX.V; STKXF:OTCQB) expects to close its acquisition of the Northumberland Gold Project in Nevada from subsidiaries of Newmont Corp. (NEM:NYSE; NEM:ASX) on or about October 6, leaving it with about CA$90 million in cash to advance the project, according to a September 29 release.

The company also said its 10-for-1 share consolidation will take effect on October 2.

Clearing the Way for Northumberland

The company announced the consolidation of all issued and outstanding common shares, options, and warrants on a 10 pre-consolidation shares for 1 post-consolidation share basis. Following the consolidation, StrikePoint will have approximately 7,239,238 common shares issued and outstanding. Once the subscription receipts from the CA$190 million bought deal convert into shares, the company expects approximately 102.2 million shares outstanding, the release said.

StrikePoint said it also refiled an amended technical report on the Northumberland Gold Project on SEDAR+ following a request from the TSX Venture Exchange. The company anticipates closing the acquisition of Northumberland from Newmont subsidiaries on or about October 6, at which point the financing proceeds will be released.

Reviving a Nevada Gold Project

The transaction involves StrikePoint acquiring the past-producing Northumberland Gold Project in Nevada's Walker Lane trend from subsidiaries of Newmont. The deal was previously announced in August and September. Upon closing and release of the CA$190 million subscription receipt financing (95 million receipts at CA$2.00 each), StrikePoint expects approximately CA$90 million in cash to fund a comprehensive work program, including resource expansion, infill drilling, and technical, economic, and environmental studies, the company said.

"With the acquisition of the Northumberland Gold Project and the release of the funds from the Financing, StrikePoint will have approximately CA$90 million in cash to undertake a comprehensive work program to aggressively advance the project," StrikePoint Chief Executive Officer Michael G. Allen said. "Goals include resource expansion and infill, and technical, economic, and environmental studies. Having been idle for more than 15 years, Northumberland represents an exceptional opportunity to define and develop a gold project of significant scale, located in the mining-friendly jurisdiction of Nevada, USA."

Project Background and Other Assets

Northumberland hosts an initial mineral resource estimate of 2.86 million ounces (Moz) gold equivalent indicated, and 1.57 Moz inferred, according to an August 18 release.

StrikePoint's existing portfolio includes the Hercules and Cuprite gold properties in Nevada, with Northumberland positioned to become the flagship asset post-acquisition.

The New Crown Jewel

Stronger-than-expected U.S. growth and cooler inflation readings lifted gold prices on Wednesday, according to a September 30 report by Kitco News' Ernest Hoffman. The Bureau of Economic Analysis reported that the economy grew at a 2.2% annual rate in the second quarter, above the prior 1.5% estimate and economists' 1.5% forecast. Growth also exceeded the first quarter's 2.1% pace. The GDP price index rose 6.1%, below the earlier estimate and the 6.4% economists had expected.

August inflation data also came in below forecasts. Core personal consumption expenditures, the Federal Reserve's preferred inflation measure, increased 0.2% for the month, compared with July's revised 0.1% gain and expectations of 0.3%. Core inflation reached 3.0% over the year, versus the 3.3% consensus forecast. Headline prices rose 0.3% in August and 3.4% over 12 months, both below economists' respective estimates of 0.4% and 3.7%.

Household income increased 0.2% in August, following a revised 0.3% rise in July and falling short of the 0.4% forecast. Spending climbed 0.9%, up from a revised 0.1% increase in June and above the expected 0.8% gain.

John Newell said StrikePoint offered "deep-value optionality" and "a fully permitted oxide gold asset in one of the world's best mining jurisdictions," backed by "a proven technical and capital markets team."¹

Gold reached its session high after the reports. Spot prices last traded at US$4,213.11 per ounce, up 0.74% for the day.

Gold regained some ground on Wednesday after a steep September decline, but UBS's US$4,600 year-end target now requires a larger advance, reported Dave Taylor for ExchangeRates.org.uk on September 30.

Bullion rose 0.20% to about US$4,195 an ounce in morning trading, following a 1.49% rebound on Tuesday. Monday's 3.20% drop had brought the closing price to roughly US$4,125, leaving gold nearly 6% lower for September through Tuesday.

Higher Treasury yields and a stronger U.S. dollar had weighed on gold by raising the cost of holding an asset that pays no interest. Prices found support on Wednesday as yields eased and investors reduced their expectations for a Federal Reserve rate increase in October. UBS's September 24 forecast sees gold reaching US$4,600 in December 2026, US$5,000 in March 2027, US$5,200 in June, and US$5,400 in September. From Wednesday's price, those targets imply a gain of about 9.7% by year-end and 28.7% by September 2027.

'The Market Hasn't Caught On. Yet.'

Northumberland would become StrikePoint's flagship asset if the acquisition closes, France Pinzon reported for Mining.com.au on August 19.

¹In addition, in an August 11, 2025, review published before the Northumberland deal, John Newell of John Newell and Associates described StrikePoint Gold as a potentially undervalued explorer in Nevada's Walker Lane district.

Newell cited the company's 2024 purchase of the Hercules project for far less than its previous US$25 million sale price. He noted that Hercules is fully permitted for exploration drilling and hosts a large oxide gold system.

Yet, he said, investors had not fully priced in the project's potential. "And the market hasn't caught on," he observed, then added, "Yet." His wording suggested he expected that to change.

Newell said StrikePoint offered "deep-value optionality" and "a fully permitted oxide gold asset in one of the world's best mining jurisdictions," backed by "a proven technical and capital markets team."

Ownership and Share Structure²

Before the financing, about 2.97% of StrikePoint is held by insiders and management, and mining financier Eric Sprott owns about 4.12% through his company, 2176423 Ontario Ltd. The rest is retail.

The CA$190 million financing is expected to substantially reshape that ownership. Strategic investor Tembo Capital Holdings IV Guernsey Ltd. bought 20.3 million subscription receipts in the offering. The receipts carry no voting rights until they convert, after which Tembo is expected to own about 19.9% of StrikePoint's outstanding shares.

The company has 72.39 million shares in circulation and a market capitalization of CA$11.96 million. It trades within a 52-week range of CA$0.12 to CA$0.34. Those figures are before StrikePoint's 10-for-1 share consolidation, which takes effect October 2 and will reduce the share count to about 7.24 million. Once the subscription receipts convert, the company expects about 102.2 million shares outstanding.

Key Investor Takeaways

• StrikePoint expects to close its acquisition of the Northumberland Gold Project from Newmont subsidiaries on or about October 6, which will release the CA$190 million in subscription receipt financing from escrow.
• The company expects to have about CA$90 million in cash after closing to fund resource expansion, infill drilling, and technical, economic, and environmental studies at Northumberland, which has been idle for more than 15 years.
• Northumberland hosts an initial mineral resource estimate of 2.86 million ounces gold equivalent indicated and 1.57 million ounces inferred, and it will become StrikePoint's flagship alongside its Hercules and Cuprite projects.
• A 10-for-1 share consolidation takes effect October 2, leaving about 7.24 million shares outstanding. That rises to about 102.2 million once 95 million subscription receipts, sold at CA$2.00 each, convert into shares.
• StrikePoint refiled its Northumberland technical report on SEDAR+ at the TSX Venture Exchange's request.
• Gold rebounded to about US$4,213 an ounce on September 30 after cooler-than-expected U.S. inflation data, and UBS forecasts US$4,600 by year-end and US$5,400 by September 2027.

Common Questions from Investors

When does the Northumberland deal close?

StrikePoint expects to close the acquisition on or about October 6, 2026. At that point, the proceeds from its CA$190 million subscription receipt financing will be released from escrow.

What does the consolidation mean for the share count?

The 10-for-1 consolidation, effective October 2, will reduce the shares outstanding to about 7.24 million. When the 95 million subscription receipts from the financing convert into shares, the total will rise to about 102.2 million.

What will StrikePoint do with the cash?

The company expects to have about CA$90 million after closing. CEO Michael Allen said the goals include resource expansion and infill drilling, as well as technical, economic, and environmental studies, to "aggressively advance the project."

Why is Northumberland significant?

The past-producing project in Nevada's Walker Lane hosts 2.86 million ounces gold equivalent indicated and 1.57 million ounces inferred. It has been idle for more than 15 years, which Allen called "an exceptional opportunity to define and develop a gold project of significant scale."

How is the gold market affecting the outlook?

Gold rose to about US$4,213 an ounce on September 30 after U.S. inflation data came in cooler than expected, recovering part of a steep September decline. UBS forecasts US$4,600 by December 2026 and US$5,400 by September 2027, which would mean gains of about 9.7% and 28.7% from current levels.