Black Cat Syndicate is set to raise $17 million through a share placement, at a premium to its recent share price but substantially below its previous capital raisings.
Black Cat Syndicate is set to raise $17 million through a share placement, at a premium to its recent share price but substantially below its previous capital raisings.
The Perth-based gold explorer has received commitments from investors for a $17 million placement at a price of 40 cents per share.
The placement price represents a 6.9 per cent premium to the 30-day volume weighted average share price.
Yet in April 2022, Black Cat raised $35 million through a placement at 55 cents per share and in the previous year it raised $20 million at 67 cents a share.
The $35 million raising was followed by a slump in its share price as the market absorbed the company's acquisition of the mothballed Paulsens gold mine in the Pilbara.
The latest funds raised will be used towards restarting the Paulsens and Coyote processing facilities.
The Paulsens gold operation is located west of Paraburdoo and consists of an underground mine, open pits and a processing facility.
The Coyote gold project in northern Western Australia also has an open pit and underground mine and a smaller processing facility.
The company will immediately focus on extending and discovering drilling at Paulsens, where a second underground drilling rig will be used to accelerate the process.
Black Cat managing director Gareth Solly said the placement would allow them to advance their production restart objectives by accelerating resource growth activity at Paulsens.
“Longer term discovery targets at Paulsens Repeats and the Paulsens Extension will be drilled at the same time,” he said.
“We have one of Australia’s highest-grade deposits at Coyote…and a restart study and required additional drilling will also be undertaken.
“We look forward to completing a resource update at Paulsens in early February 2023 and providing ongoing updates as we progress our plans and drilling programs during 2023.”
Shaw and Partners was lead manager for the latest placement.
Black Cat Syndicate shares were down 9.9 per cent to 40.5 cents at market close.
