Western Australian gold explorer Black Cat Syndicate has received firm commitments from institutional and sophisticated investors in respect of a $8.3 million placement.
The $8.3 million placement involves the issue of 36,888,890 new fully paid ordinary shares at an issue price of $0.225 per share.
The placement price of $0.225 per share represents a 15.1 per cent discount to the last close on August 24 and a 23.2 per cent discount to the five-day volume weighted average price (VWAP).
Black Cat will also issue 18,444,445 attaching options that will be subject to shareholder approval, based on one new option for every two shares issued pursuant to the placement.
These options will be exercisable at $0.3375 per option, this being 150 per cent of the placement price. The options will expire 24 months from the date of issue.
Proceeds from the placement will be used for drilling and evaluation activities at the Paulsens gold operation in WA, which Black Cat acquired from Northern Star Resources in June 2022.
These activities will target a substantial increase in cashflow over the Paulsens restart study. The placement funds will also be used to advance discussions with several debt providers.
“We are excited to continue to explore at Paulsens. The recent studies we have undertaken give us an enviable baseline for the further optimisation of production outcomes and operating cash flow,” Black Cat Syndicate managing director Gareth Solly said.
“We are excited to continue to reinvent this iconic mine, where projected future cashflow is expected to increase substantially, together with a reduction in upfront capital expenditure.
“This potential is reinforced by the recent discovery of the main zone extension, and the bonanza grades that we are seeing immediately adjacent to areas of the current mine plan.”