Catalyst Metals Limited (ASX: CYL) has received firm commitments to raise A$22M through a placement.
Placement proceeds will be used to accelerate development and exploration activities across the Plutonic-Marymia gold belt, following Catalyst’s successful takeover of Vango Mining Limited and subject to the acquisition of Superior Gold Inc, which has been unanimously recommended by Superior’s Board of Directors and strongly supported by Superior’s shareholders.
“The strong support for the placement reflects the outstanding opportunity we have to generate growth and create value through our assets in three key Australian gold belts,” Managing Director, James Champion de Crespigny, said.
“The proceeds will be used to unlock the value of these assets, including the immense opportunity awaiting us at the adjacent Marymia and Plutonic projects in WA, where we will have NI 43-101 Resources of ~5.9Moz, JORC Resources of 1.0Moz and a 3Mtpa processing plant (subject to the acquisition of Superior Gold).
In February Catalyst announce that it had entered into a definitive agreement with Superior Gold Inc. (TSXV:SGI) pursuant to which Catalyst will acquire all of the issued and outstanding common shares of Superior via a plan of arrangement under the laws of Ontario, Canada.
The Transaction, in conjunction with Catalyst’s successful acquisition of Vango Mining Limited, provides a compelling opportunity to unlock and maximise value from the world-class Plutonic-Marymia gold belt and support the growth of a new high grade, mid-tier gold mining company on ASX.
The Plutonic gold mine has a 3Mtpa CIL processing capacity via two plants, Reserves of 630,000oz at 3.5g/t and a Resource of 5.9Moz at 3.7g/t.9 With Vango’s Resource of 1Moz at 3.3g/t2, the combined Plutonic- Marymia belt will host a significant gold Resource base.
In addition, the Transaction includes significant associated infrastructure. The Plutonic mine site itself is well capitalized with 3Mtpa CIL processing capacity, 364-person accommodation camp, 37-piece underground mobile equipment fleet estimated to be valued at c. A$50M, airstrip and a 16MW gas fired power station.
For further information please visit: https://catalystmetals.com.au/