PERTH (miningweekly.com) – Gold explorer Black Cat Syndicate will raise A$10-million through a share placement to professional and sophisticated investors.
The placement will be priced at 82c a share, which represents a 7.3% discount to Black Cat’s closing price on July 10.
The company said on Wednesday that the majority of the share placement would be conducted under its existing placement capacity, with more than 12.1-million shares to be placed without shareholder approval.
The placement of 256 098 shares would be subject to shareholder approval.
“We have set ourselves a short-term goal of increasing our already robust resource base to one-million ounces. This funding will be applied towards reaching this target. We are also looking to establish sufficient resources and reserves to underpin our first three years of production,” said Black Cat MD Gareth Solly.
“In this regard, we are in the process of acquiring long lead items to support construction of a mill east of Kalgoorlie. This includes an option to acquire, refurbish and relocate six adsorption tanks.
“Mining studies are ongoing and mill studies will be funded by this placement. We will also assess a number of toll treating alternatives in relation to the Myhree Stage 1 openpit. Cashflow from the Myhree Stage 1 openpit may be used as a potential funding source for future mine development and mill construction,” Solly added.
The company is looking to commit to mill construction in the June half of next year.