ASX-listed Black Cat Syndicate has extended the timing of its remaining A$51-million funding package from February 28, to May 31.

Subject to completion, the funding package will be used to restart the Paulsens gold operation in Pilbara.

On September 26, a $60-million funding package to restart Paulsens was announced.

The package included equity placements of $45-million to wholly owned subsidiaries of Fuyang Mingjin New Energy Development and Southeast Mingqing Supply Chain and a secured debt facility of $15-million with Mingjin.

The funding package (before costs) comprised equity placements of $45-million, with the issue of about 200-million fully paid ordinary shares; and a secured debt facility of $15-million, provided on competitive terms with payments of principal and interest blended with expected production startup/cashflow.

On December 27, the $60-million funding package was restructured with a $9-million unsecured, convertible note facility with Sundy Service Group and a comparable reduction in the equity placements from $45-million to $36-million.

The secured debt facility with Mingjin remained unchanged at $15-million.

Completion of the remaining $51-million is subject to conditions which include Foreign Investment Review Board and any other Australian regulatory approvals; and Chinese regulatory approvals required for overseas direct investment.

To accommodate possible regulatory delays in approvals for the secured debt facility of $15-million and the remaining equity placement of $36-million, the parties have, by mutual agreement, extended the completion date of these facilities.

Notwithstanding the extension and given the gold price environment, the parties highlight that they are working to accelerate funding within the extension period.

The $9-million of funding already received is being applied in refurbishing the Paulsens processing facility. This includes securing long lead time items and early refurbishment works.

“All parties are looking to facilitate the restart of Paulsens in a high gold price environment. The $9-million of convertible notes funding already received is being applied to ordering long lead time items and the processing facility refurbishment.

“Regular updates will continue to be provided on our progress. The regulatory approval process is progressing satisfactorily. While contingency has been allowed for possible delays, we are continuing to work with the parties to accelerate funding within the extension period,” says MD Gareth Solly.