STLLR Gold Inc.

Note: The ticker NHK in the research queue refers to the former Nighthawk Gold Corp. (TSX: NHK), which completed an at-market merger with Moneta Gold Inc. in February 2024 to form STLLR Gold Inc. The company now trades on the TSX as STLR (OTCQX: STLRF). This scorecard is filed under the queue ticker NHK. CEO Keyvan Salehi, previously CEO of Moneta Gold, was appointed to lead the combined entity at formation. Salehi's total annual compensation is approximately C$1.52M, with approximately 74% in equity-linked instruments (options, RSUs). He directly owns approximately 1.42% of shares outstanding — worth approximately C$4.7M at current prices — providing meaningful but below-average alignment for the Verdict Framework's standards. Total insider ownership stands at 12.13%, with institutions at 5.89%.

Insiders have been net buyers in the past three months, a constructive signal that is partially offset by the compensation-heavy remuneration structure. The company has been actively building its leadership team post-merger: VP Finance Conor Kearns was appointed April 2025, VP Human Resources Kristen Picavet in January 2026, and a seasoned finance executive (Sandra Odendahl) was added to the board in 2025 with ESG expertise relevant to Ontario permitting. Board composition reflects the merger legacy, with representation from both the former Nighthawk and Moneta shareholder bases.

The key management concern is structural rather than personal: the February 2024 merger resulted in a 69.5% increase in shares outstanding, the dilutive cost of combining two pre-production companies. Integration priorities and the challenge of simultaneously advancing two large development projects — Tower (Ontario) and Colomac (NWT) — with limited working capital create execution risk. Score: 3/5.

STLLR holds two large PEA-stage gold projects. At Tower (Timmins Mining Camp, Ontario), the 2025 NI 43-101 resource totals 4.0 Moz Au Indicated (140.4 Mt at 0.89 g/t) plus 7.0 Moz Au Inferred (200.3 Mt at 1.08 g/t). The 2025 Tower PEA, filed on SEDAR+ as an NI 43-101 technical report, delivered an after-tax NPV5% of C$1.36B (US$1.01B) at US$2,500/oz gold and IRR of 13.4%, supporting an 11 Mtpa operation producing 273,000 oz/year over 19 years with peak output of 325,000 oz. At Colomac (Indin Lake, Northwest Territories), the resource comprises 3.38 Moz M&I (open-pit 2.8 Moz + underground 583 koz Indicated) plus approximately 1.70 Moz Inferred in the main deposit, and 1.69 Moz Inferred across four satellite deposits (Kim, Cass, Treasure Island, Damoti). The Colomac PEA (pre-merger Nighthawk Gold study) supports 290,000 oz/year for 11.4 years. A third asset, the Hollinger Tailings Project (Timmins), holds a maiden NI 43-101 resource of 412 koz Indicated at 0.35 g/t (36.2 Mt) and received Ontario's first-ever Recovery of Minerals permit in February 2026.

Tower's 0.89 g/t Indicated grade is the primary geological concern. At this grade, mine economics are highly sensitive to operating cost inflation and gold price. The Tower PEA's 13.4% IRR at US$2,500/oz is marginal — below the 15–20% minimum most institutional project financiers require for a feasibility-level investment decision. Colomac's grade profile is materially superior (1.45–1.73 g/t M&I for the main open-pit + underground) and may ultimately represent the more economically attractive standalone project. Both PEAs are at NI 43-101 conceptual study level; neither project has advanced to a Pre-Feasibility Study.

Resource classification at Tower is the critical constraint: 63.6% of Tower ounces (7.0M of 11.0M total) are Inferred, which NI 43-101 explicitly states carry 'too much geological uncertainty to allow adequate definition of grade or quantity' for economic viability assessments. The 2025 Tower PEA incorporates Inferred resources in the mine plan, which the NI 43-101 rules permit at PEA level but not at PFS or FS level. Colomac has a healthier Indicated/Inferred split (3.38M Indicated vs. 1.70M Inferred in the main deposit). Score: 3/5 — large multi-project resource with two PEAs; Tower's marginal grade and tight IRR, and the heavily Inferred Tower resource, prevent a higher score.

As of January 27, 2026, STLLR has 151.3M basic shares outstanding (178.9M fully diluted), including 14.7M warrants at a weighted exercise price of C$1.70 and 12.1M options at C$1.34. This is a relatively lean share structure for a company with combined gold resources exceeding 10 Moz across two large projects — a consequence of forming through a merger of two mid-sized junior companies rather than issuing shares organically through small placements. Working capital stands at approximately C$22M, with C$1M reclassified from restricted cash to short-term investments in early 2026 following completion of Colomac reclamation activities. The company completed a C$25M bought deal in November 2024, which meaningfully contributed to the current working capital base.

The core capital concern is the severe mismatch between current financial resources and project advancement requirements. The Tower PEA alone calls for C$1.87B initial capital expenditure — approximately 85× the current working capital. Advancing Tower to a Pre-Feasibility Study will require approximately C$15–30M in engineering and drilling expenditure. At C$22M working capital, the company is essentially running at the margin of what is needed to fund a full PFS campaign for one project, let alone two. A meaningful equity raise (C$75–100M+) or a strategic partnership/royalty agreement is likely required in 2026–2027 to maintain momentum on Tower.

The 69.5% share count growth from the February 2024 Nighthawk-Moneta merger is a one-time structural event rather than ongoing dilution from serial placements. The lean fully diluted count of 178.9M is a genuine advantage: there is capacity for accretive capital raises without immediately crushing the per-share NAV. Warrants at C$1.70 and options at C$1.34 are in-the-money at C$2.05, creating near-term dilution of approximately 26.7M shares if exercised. Score: 2/5.

The Tower PEA, delivered in 2025, was STLLR's most significant value-crystallising event in its first full year of existence. The US$1.0B NPV5% at US$2,500/oz positioned Tower as one of Ontario's largest undeveloped gold projects by resource size and established STLLR as a credible development-stage company. Following the PEA, the logical next catalyst is a Pre-Feasibility Study decision for Tower (or Colomac), which would upgrade resource confidence to Probable Reserves, improve cost estimates from ±35–50% (PEA) to ±25% (PFS), and reframe the project's investability for institutional capital. A PFS announcement has not been made as of April 2026; the thin working capital base is a gating factor.

The Hollinger Tailings Project represents a potentially transformative near-term catalyst on a different risk-return profile. Ontario issued STLLR the first-ever Recovery of Minerals permit under Ontario's new provincial regime in February 2026, enabling evaluation of the 412 koz Indicated tailings resource for potential recovery. Tailings reprocessing projects carry dramatically lower capex than greenfield mines (no open pit, no underground development) and can be operationalised in 24–36 months. If Hollinger Tailings advances to a construction decision, it could generate cash flow to self-fund Tower and Colomac PFS work. The Colomac 2024 drill program (concluded September 2024) results should be informing a potential resource update in 2026, representing additional catalyst potential for the NWT project.

Score: 3/5 — multiple catalysts across three projects, but the most value-accretive milestones (Tower PFS, Colomac resource upgrade) are 12–18+ months away. Hollinger Tailings is the wildcard.

The 2025 Tower PEA delivered a raw (undiscounted) after-tax NPV5% of C$1.36B. Applying the mandatory 50% PEA discount per the Verdict Framework study-tier hierarchy: adjusted Tower project NAV = C$680M. Adding current working capital of C$22M: total adjusted value = C$702M. With 151.3M basic shares, the discounted Tower-only NAV per share is approximately C$4.64. At C$2.05/share, the Tower-only discounted P/NAV = 0.44× — technically below the 0.5× boundary.

Adding Colomac materially increases the asset value. The Colomac PEA (pre-merger Nighthawk study) supports 290,000 oz/year for 11.4 years. Applying a 50% PEA discount to an estimated raw Colomac NPV5% of C$600–700M (using conservative comparable economics for a 1.6 g/t average-grade, 290,000 oz/year open-pit/underground operation in an established mining jurisdiction): adjusted Colomac NAV = C$300–350M. Total two-project discounted NAV: approximately C$1.0–1.05B, or approximately C$6.60–6.95/share on 151.3M shares. At C$2.05, the combined P/NAV approaches 0.30×. Hollinger Tailings represents additional optionality not reflected in this calculation.

Despite the apparently deep discount, three factors constrain this score below 4: (1) Tower's C$1.87B initial capex and 13.4% IRR at US$2,500/oz create genuine project financing challenges — institutional mine financiers typically require 15–20%+ IRR on a bankable feasibility study before committing project debt; (2) Tower's resource is 63.6% Inferred, inflating the PEA NAV with lower-confidence ounces that will be partially excluded at PFS stage; (3) C$22M working capital means the company must dilute shareholders to fund any PFS campaign, compressing per-share NAV. Score: 3/5. The discounted P/NAV of 0.30–0.44× is genuinely attractive, but the capex overhang and marginal IRR are the market's rational discount mechanism.