StrikePoint Gold Seals Newmont's Northumberland Deal, Returns to Trading with CA$190M Raised

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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 to 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.

Key Investor Takeaways

• StrikePoint Gold Inc. closed its acquisition of the Northumberland Gold Project from Newmont subsidiaries on October 6, paying US$70 million in cash, and its shares resumed trading on the TSX Venture Exchange on October 8.
• Two contingent payments of US$25 million each are tied to completion of a feasibility study and to certain commercial production milestones.
• An independent estimate puts Northumberland's resource at 2.86 million ounces of gold equivalent in the indicated category and 1.57 million ounces in the inferred category, with an effective date of July 31, 2026.
• The purchase was funded by a CA$190 million bought deal financing led by Canaccord Genuity, and StrikePoint said it has approximately CA$90 million in working capital after closing and related costs.
• Tembo Capital now holds about 19.9% of the company, and Tembo, Ithaki, and BlackRock together own more than 40%.
• StrikePoint expects to start drilling within a month to expand and infill the resource, with five drill permits in place, subject to transfer or replacement requirements.
• The resource sits on private land that previously hosted open-pit production, which the company said could simplify permitting, and the project has not been explored since about 2010.
• Alan Pangbourne, who has more than 35 years of experience in global mining operations, joined the board as chairman.

StrikePoint Closes Northumberland Purchase and Returns to Trading

StrikePoint Gold Inc. (SKP:TSX.V; STKXF:OTCQB) has completed its acquisition of the Northumberland Gold Project in Nevada's Walker Lane from subsidiaries of Newmont Corp. (NEM:NYSE; NEM:ASX; NEM:PNGX), according to an October 6 release. Its shares resumed trading on the TSX Venture Exchange on October 8.

The transaction closed on October 6, with StrikePoint paying US$70 million in cash at closing, the company said in a release. The closing also satisfied the escrow release conditions for its CA$190 million bought deal financing led by Canaccord Genuity. The shares had been halted pending final exchange approval and now trade on a post-consolidation basis.

Northumberland is a past-producing gold deposit, largely on private land, with a mineral resource defined by more than 1,500 drill holes. An independent estimate puts it at 2.86 million ounces (Moz) of gold equivalent (AuEq) in the indicated category and 1.57 Moz AuEq in the inferred category.

"Northumberland represents a transformational acquisition for StrikePoint," President and CEO Michael G. Allen said in the October 8 release. "While the current resource is significant, I am particularly excited by the exploration potential seen to date."

Allen told Streetwise Reports the purchase is the largest deal he has done in the Walker Lane, a trend that is also home to the Comstock, Round Mountain, and AngloGold Ashanti Plc's (AU:NYSE; ANG:JSE) Arthur project.

"This is definitely up there as a significant resource in the Walker Lane, so it's a neat thing and good to do a deal with Newmont," Allen said.

Deal Terms, Financing, and a New Shareholder Base

Beyond the upfront payment, StrikePoint agreed to two contingent cash payments of US$25 million each. The first is due within 120 days after completion of a feasibility study, and the second within 120 days after Northumberland reaches certain commercial production milestones, according to the October 6 release.

The purchase was funded by a bought deal private placement of 95 million subscription receipts at CA$2.00 each, with Canaccord Genuity as sole underwriter. Each receipt converted into one common share at closing. That followed a 10-for-1 share consolidation effective October 2, which left about 7.24 million shares outstanding before the conversion.

Net proceeds covered the cash portion of the purchase, and the balance is earmarked for exploration and development at Northumberland and general corporate purposes. StrikePoint said it has approximately CA$90 million in working capital after closing and related costs.

Tembo Capital bought 20.3 million subscription receipts and now holds approximately 19.9% of the company on a non-diluted basis. An investor rights agreement gives it the right to nominate one director and one member of a new technical committee. A Tembo affiliate also paid US$10 million for a 0.5% net smelter return royalty on Northumberland, half of which StrikePoint can buy back for US$25 million. Tembo, Ithaki, and BlackRock together own more than 40% of the company, StrikePoint said.

Alan Pangbourne, who has more than 35 years of experience in global mining operations, joined the board as chairman. Shawn Khunkhun, formerly executive chairman, remains a director.

"The Board's priority is to support Mike and his team in advancing it with discipline: high-quality technical work, careful capital allocation and strong governance, so that every dollar spent builds value for shareholders," Pangbourne said in the October 6 release.

Allen said the deal follows a pattern of smaller companies buying secondary assets from major miners. He pointed to Discovery Mining Ltd. (DSV:TSX; DSVSF:OTCQX), which bought the Porcupine Complex in Ontario from Newmont in April 2025; Hemlo Mining Corp. (HMMC:TSXV; HMMCF:OTCQX), which acquired the Hemlo mine in Ontario from Barrick Mining Corp. (ABX:TSX; B:NYSE) in November 2025; and SSR Mining Inc. (SSRM:NASDAQ), which closed its purchase of the Cripple Creek & Victor mine in Colorado from Newmont in February 2025.

An Initial Resource and the First Drilling in More Than 15 Years Ahead

The mineral resource estimate, prepared by SLR Consulting (Canada) Ltd. with an effective date of July 31, 2026, is StrikePoint's first for the project. The indicated resource is 67 million tonnes (Mt) grading 1.26 grams per tonne (g/t) gold and 5.38 g/t silver, containing 2.71 Moz of gold and 11.60 Moz of silver. That equates to 2.86 Moz AuEq at 1.33 g/t AuEq.

The inferred resource is 31 Mt grading 1.53 g/t gold and 4.28 g/t silver, containing 1.52 Moz of gold and 4.26 Moz of silver, or 1.57 Moz AuEq at 1.58 g/t AuEq. The estimate uses long-term prices of US$3,500 per ounce of gold and US$55 per ounce of silver and is reported within an optimized pit shell.

The estimate draws on 1,511 reverse-circulation and 37 core holes drilled by previous operators. StrikePoint has not yet drilled or explored the project itself. The company noted that mineral resources are not mineral reserves and do not have demonstrated economic viability, and that Northumberland has no reserves. The qualified person also identified limitations in the data, including sparse preg-robbing and sulfur coverage relative to the gold assay database.

Allen said the company expects to start drilling within a month, with the goal of expanding and infilling the existing resource. Its geological team is also evaluating several greenfields targets that could be drilled in 2027. Five drill permits are in place, subject to transfer or replacement requirements. The project has not been explored since about 2010, and the deposit is open in multiple directions, the company said.

A Past Producer in Nevada's Walker Lane

Northumberland is about 150 kilometers (km) by road from Tonopah, Nevada, with access by paved highway and all-weather county road. Kinross Gold Corp.'s (K:TSX; KGC:NYSE) Round Mountain Mine is about 60 km by road to the south. The Walker Lane also hosts AngloGold Ashanti's Arthur Gold Project and Centerra Gold Inc.'s (CG:TSX; CGAU:NYSE) Goldfield Project. StrikePoint describes Northumberland's mineralization as Carlin-style, meaning sediment-hosted with fine disseminated gold.

Gold was discovered in Northumberland in the late 1800s. Significant oxide mineralization was found in the 1930s and mined intermittently by various operators until 1991. Fronteer Gold acquired an interest in the property in 2007, and Newmont acquired Fronteer in 2011. The current resource sits on private property that previously hosted open-pit production, which the company said could simplify permitting.

Vancouver-based StrikePoint now counts Northumberland as its flagship. It also owns a portfolio of Nevada exploration properties, including the Hercules and Cuprite gold projects. Nevada has produced more than 218 Moz of gold to date, according to the company.

Resource 'Viewed as a Starting Point'

With the acquisition closed, trade coverage has turned to what comes next. The initial resource estimate "is viewed as a starting point," with the deposit open in multiple directions, Jay Lutz wrote for The Deep Dive on October 7. He noted that StrikePoint intends to get drill rigs turning quickly.

Northumberland hosted open-pit production until 1991 and has not been explored since about 2010, Paula Fabe reported for Mining.com.au on October 7.

¹In addition, in an August 11, 2025, review published a year before the Northumberland deal was announced, 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."

Gold Holds Above US$4,000 as Central Banks Keep Buying

Gold was trading near US$4,119 per ounce on Thursday morning, according to CNBC, up about 0.8% from a day earlier. The metal is roughly 26% below its January peak of about US$5,595, a pullback tied mainly to rising U.S. Treasury yields and a stronger dollar, Sunainaa Chadha reported for Business Standard on October 6. Tata Mutual Fund, in an outlook cited in that report, called the weakness "cyclical headwinds rather than a change in gold's long-term story."

Official buying has picked up as prices cooled. Central banks bought a net 289 tonnes in the second quarter, up about 62% from a year earlier and a record for a second quarter, the World Gold Council reported on July 30. A record 45% of central banks surveyed expect to add to their gold holdings over the next 12 months.

Most major bank forecasts remain above the current price. Goldman Sachs has a year-end target of US$4,900, UBS sees about US$4,600 in December, and US$5,000 in March 2027, and Morgan Stanley expects gold above US$5,000 in 2027, Moz Farooque reported for TheStreet on October 4. HSBC trimmed its 2026 average forecast to US$4,490 on October 1 but still expects structural demand to limit the downside, according to the report.

Near-term views are more divided. Bank of America sees gold averaging near US$4,000 in the fourth quarter, according to TheStreet, and 46% of Wall Street analysts in Kitco's October 2 weekly survey were bearish. Marc Chandler of Bannockburn Global Forex was among those looking higher, telling Kitco that a move above US$4,280 to US$4,300 would suggest a bottom is in place.

Ownership and Share Structure²

Funds and other institutions hold about 82% of StrikePoint. Tembo Capital Holdings IV Guernsey Ltd. owns 20.3 million shares, or about 19.9% of the company on a non-diluted basis. Ithaki holds 13.7%, and BlackRock Advisors LLC, a unit of BlackRock, Inc. (BLK:NYSE), holds 10.2%. Other funds hold 38.5%. High-net-worth investors hold 10.6%, and shareholders from before the financing hold 7.1%.

StrikePoint has about 102.2 million shares outstanding after the 10-for-1 consolidation and the conversion of 95 million subscription receipts. It has about 10.3 million warrants and 0.5 million options outstanding. Of the warrants, 7.06 million were issued in connection with the financing. The balance predate the consolidation and carry exercise prices above CA$7.

The shares resumed trading on October 8 and were at CA$1.71 in late-morning trading, for a market capitalization of about CA$174.8 million. The 52-week range on a consolidation-adjusted basis is about CA$1.20 to CA$2.70.

Common Questions from Investors

What did StrikePoint announce? StrikePoint completed its acquisition of the Northumberland Gold Project from Newmont subsidiaries on October 6, which also satisfied the escrow release conditions for its CA$190 million financing. Its shares resumed trading on October 8 on a post-consolidation basis.

What are the payment terms? StrikePoint paid US$70 million in cash at closing. Two contingent payments of US$25 million each are due within 120 days after completion of a feasibility study and within 120 days after certain commercial production milestones.

How was the purchase funded, and how much cash is left? StrikePoint sold 95 million subscription receipts at CA$2.00 each in a bought deal private placement, with Canaccord Genuity as sole underwriter. The company said it has approximately CA$90 million in working capital after closing and related costs.

What is the current mineral resource in Northumberland? The indicated resource is 2.86 Moz AuEq at 1.33 g/t AuEq, and the inferred resource is 1.57 Moz AuEq at 1.58 g/t AuEq, according to an estimate by SLR Consulting (Canada) Ltd. with an effective date of July 31, 2026. It is based on drilling by previous operators. Mineral resources are not mineral reserves, and Northumberland has no reserves.

When will drilling start? The company expects to start drilling within a month, with the goal of expanding and infilling the existing resource. It is also evaluating several greenfields targets that could be drilled in 2027.

Who are the largest shareholders now? Tembo Capital holds about 19.9% on a non-diluted basis and has the right to nominate one director. Tembo, Ithaki, and BlackRock together own more than 40%. StrikePoint has about 102.2 million shares outstanding.

How does the deal relate to Newmont? Newmont, which acquired the project when it bought Fronteer in 2011, sold it through subsidiaries and is owed the two contingent payments if the milestones are met. CEO Michael G. Allen said the deal follows a pattern of smaller companies buying secondary assets from major miners.

How have the shares traded since resuming? The shares were at CA$1.71 in late-morning trading on October 8. At that price, the company's market capitalization is about CA$174.8 million.

What is the backdrop for gold? Gold was trading near US$4,119 per ounce on October 8, roughly 26% below its January peak. Central banks bought a record amount in the second quarter, and most major bank forecasts remain above the current price, though near-term views are divided.