Black Cat Syndicate receives $60m funding package for gold projects
Black Cat Syndicate (ASX:BC8) has received a $60m funding package to advance work across its three Australian gold projects.
Subject to completion, Black Cat will use the funding to restart operations at the Paulsens and Coyote gold operations and develop the Kal East project.
Black Cat will receive the funding from technology and investment group Mingjin and supply chain management group Southeast Mingqing.
Of the $60m, $45m will be provided by the way of an equity placement with both companies to contribute equal amounts. The placements will involve the issue of around 200m full paid ordinary share at 22.5 cents per share.
On completion, both Mingjin and Southeast Mingqing will become substantial shareholders with each holding 19.9%.
The remaining $15m will be accessed by a secured debt facility provided by Mingjin. It has an expected production start-up/cashflow in September 2024.
Black Cat managing director Gareth Solly says this funding is a major milestone for the company.
“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,” he said.
“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.
“Both Mingjin and Southeast Mingqing share our vision and we look forward to both companies becoming substantial shareholders in Black Cat.”
Black Cat will use the money from the funding package to secure longer lead time items for the processing plant refurbishment, restarting activities at Paulsens and paying $10m — plus interest — to Northern Star Resources (ASX:NST).