PERTH (miningweekly.com) – ASX-listed Catalyst Metals on Friday announced a A$22-million capital raise to complete the acquisition of TSX-V-listed Superior Gold.
Catalyst has received firm commitments from institutional and sophisticated investors for the placement of 22-million shares, at a price of A$1 each. The placement will be done under the company’s existing capacity, and will not require shareholder approval.
The capital raise satisfies a key condition of Catalyst’s proposed acquisition of Superior, which is being implemented by way of a Canadian statutory plan of arrangement. Under the terms of the agreement each Superior shareholder will receive 1 Catalyst share for every 2.8 Superior shares held.
The offer implies a value of C$0.44 a share to Superior shares, and values the company at C$55-million. The offer represents a 62.8% premium to Superior’s last closing price on February 22 and a 64.4% premium to its 15-day volume weighted average share price.
The transaction would give Catalyst access to the Plutonic gold mine, in Western Australia, which hosts a 5.9-million-ounce resource, a three-million-tonne-a-year processing capacity, and a yearly production of 70 000 oz of gold.
“The strong support for the placement reflects the outstanding opportunity we have to generate growth and create value through our assets in three key Australian gold belts,” said MD James Champion de Crespigny.
“The proceeds will be used to unlock the value of these assets, including the immense opportunity awaiting us at the Marymia and Plutonic assets in Western Australia, where we will have a resource of some 5.9-million ounces, a Joint Ore Reserves Committee resource of one-million ounces, and a three-million-tonne-a-year processing plant.”
The placement will be cornerstoned by Superior Gold shareholder Hancock Prospecting.