Black Cat Syndicate has announced that it has secured the required funding to begin major refurbishment works to restart its Paulsens Gold Operation.
Black Cat has received commitments for $36 million via a two-tranche placement, which was strongly supported by existing shareholders along with several new North American and Australian institutional shareholders.
Proceeds from the placement will be used for the processing facility refurbishment and commencement of mining at Paulsens. This includes mining high-grade material to build a stockpile to be processed directly after commissioning, which is targeted for December 2024.
Black Cat has said that the oversubscribed placement is a strong endorsement of the company’s move into production. Funds provide for:
- Full implementation of the high-grade stockpile strategy
- Early mobilisation of a twin boom jumbo to Paulsens in July 2024 for rehabilitation activities, where required, and to prepare and advance mechanised mining areas ahead of full mobilisation of equipment and personnel in December 2024
- Ordering of new front line mobile equipment
- Advancement and mining approvals to potentially mine other open pit Resources at Kal East
- Upgrade of the Coyote May 2024 Study from scoping to pre-feasibility level
- Advancement of studies for Mt Clement at Paulsens, which is Australia’s third largest and second highest grade Antimony deposit, in a rising price environment
The placement will be supported by a secured debt facility of up to $30 million. Secured debt terms are expected to be substantially enhanced following the placement. The secured debt facility is expected to be completed in July 2024 and, together with the placement, will provide for full funding and ample working capital to ensure the successful restart of Paulsens. Leeuwin Capital is assisting Black Cat in sourcing this facility.
The company expects a strong stream of news flow for the remainder of 2024 with refurbishment activities, high-grade mining and the commencement of gold production at Paulsens. In addition, mining from the Myhree open pit at Kal East is expected to commence by July 2024 under a turn-key funding, development and processing arrangement.
Black Cat’s Managing Director, Gareth Solly, said that the company has planning for mobilisation of MACA Interquip and Cream Mining has commenced, with first gold expected to be processed in 2024.
“We welcome a range of new institutional investors to the register. I would also like to thank our loyal existing shareholders for their ongoing support. We are looking forward to becoming Australia’s next gold producer.”
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