PERTH (miningweekly.com) – Gold developer Black Cat Syndicate has secured a A$60-million funding package to drive its vision to become a dominant player in three gold districts.

The funding package consists of a A$45-million equity placement to Fuyang Mingjin New Energy Development Co. Ltd (Mingjin) and Southeast Mingqing Supply Chain Co. Ltd (Southeast Mingqing).

The placement will see the issue of 200-million fully paid ordinary shares at 22.5c each and will give the parties a 19.9% shareholding each.

In addition to the equity placement, Black Cat has also secured a A$15-million debt facility from Mingjin on competitive terms, with payments of principal and interest blended with expected production start-up and cashflows.

“This funding package is a major milestone as we drive toward Black Cat’s vision of being the dominant player in three prolific gold districts. Subject to completion, the A$60-million funding package is to be used to restart Paulsens,” said Black Cat MD Gareth Solly.

“In the period up to completion, we will be building on the foundation laid in the July 2023 Paulsens restart study. An updated study will be released in November 2023 targeting increased production, improved recoveries, lower upfront capital cost and stronger cashflow.

“We will also be progressing the regulatory items required for completion. We would like to acknowledge the support of our new proposed shareholders in Mingjin and Southeast Mingqing. Both parties share our vision of starting our three operations with strong internal cashflows and ongoing resource growth. This is an exciting time for Black Cat.”

The restart of the Paulsens project will be Black Cat’s initial focus, with internal cashflows from this operation to be applied to restart the Coyote gold operation, in West Tanami, and to fund the Kal East gold project, near Kalgoorlie.

“At a time of high gold prices, pre-development projects with low initial capital, low operating costs, strong growth potential and largely installed infrastructure are few and far between,” said Solly.

“At Black Cat, the past year has largely been about the restart of Paulsens. Our strategy going forward is to use internal cashflows from Paulsens to fund developments at Coyote and Kal East. Our robust studies at Coyote and Kal East emphasise the size of the prize. This strategy requires minimal shareholder funding to build our vision of being a 150 000 oz/y producer. At even a modest enterprise value per production ounce, Black Cat has the potential to substantially rerate.”

“With an attractive funding solution to restart Paulsens, our focus remains on the November 2023 restart study which is targeting increased production, improved recoveries, lower upfront capital cost and stronger cashflow. The short refurbishment programme will commence in early 2024 and should see first gold in the September 2024 quarter.

“Paulsens will be just the first of Black Cat’s operations and we remain committed to becoming a midtier, multi-operation producer. Subject to completion, this funding package means that investors can focus on the quality of Black Cat’s projects, our strategy and rerate potential as operations ramp up.”