High net worth investors are expected to fund ASX-listed Black Cat Syndicate $8.3 million to bolster exploration.
Exploration and development company Black Cat Syndicate forecasts to raise $8.3 million placement funded by high net worth institutional and sophisticated investors.
On Tuesday morning, Black Cat Syndicate announced the addition of more than 36 million shares, at 22.5 cents per share.
Broadly, company directors have said to bring additional value of $680,000, raising the anticipated placement value to $8.7 million.
The placement’s operational components are expected to be approved by shareholders at a conference scheduled for October.
The idea of the placement is to optimise drilling and evaluation activities at Paulsens gold mine, located 200km south-west of Karratha, where there remains significant untapped potential, Black Cat said.
In addition to exploration benefits, Black Cat said the value aimed to streamline negotiations with its debt providers.
Black Cats managing director Gareth Solly said the investment anticipated to assist in redefining Black Cat’s operations within the Paulsens mine.
“Projected future cashflow is expected to increase sustainability, together with a reduction in upfront capital expenditure,” he said.
“This potential is reinforced by the recent discovery of the main zone extension, and the bonanza grades that we are seeing immediately adjacent to areas of the current mine plan.”
Beyond Paulsens mine, the Coyote Gold and Kal East Gold projects are expected to feel capital benefits.
However, no changes have been made to the production targets outlined in the original ASX announcement released July 10 2023.
Canaccord Genuity Limited, Shaw and Partners Limited, and Bell Potter Securities Limited overlooked the placement as joint lead managers.
Black Cat shares last traded at 22 cents as of 4.10pm AEST.
