Gold company Black Cat Syndicated has replaced its A$60-million funding package to advance its vision of being a dominant player in three gold districts, the ASX-listed company announced on Friday.
A new funding package would be used to restart the Paulsens mine, in Pilbara, and then internal cashflows from Paulsens would be used to restart the Coyote gold operation in west Tanami and the Kal East project, east of Kalgoorlie.
The original funding package, announced in late 2023 and varied in February 2024, comprised equity placements of A$26-million with Mingjin and Southest Mingqing in equal portions, secured debt of A$15-million from China-based investor Sundy Service Group and unsecured convertible notes of A$9-million.
Key conditions included Chinese regulatory approvals required for Chinese companies to invest overseas (ODI) and Australian Foreign Investment Review Board approval for Chinese companies to invest in Australia.
To streamline the ODI process, Black Cat terminated the equity placements with Mingjin and Southeast Mingqin and replaced them with a A$6-million increase in the Sundy unsecured convertible note facility to A$15-million, as well as the issue of 133.3-million shares at A$0.225 a share for A$30-million to Sundy.
Sundy would now provide a total of A$45-million to restart Paulsens. Of this, A$9-million has already been provided with a further A$6-million expected in May.
Subject to shareholder and regulatory approvals, Sundy would become a 40% shareholder in the company.
The A$15-million debt facility has caused delays in the ODI approval process and has been terminated. Black Cat is engaging with local debt providers to obtain a similar facility that can be drawn down upon the receipt of the A$30-million placement to Sundy.
“This new funding package, substantially on the same terms as our previous funding package, facilitates the restart of Paulsens in a high gold price environment. The convertible note funds are already being applied to ordering long lead time items and the processing facility refurbishment,” said MD Gareth Solly.
“The parties are confident that the required regulatory approvals can be accelerated given that considerable progress has already been made on that front,” he added.