Black Cat extends time for funding package

Black Cat Syndicate (ASX:BC8) has extended the timing of its remaining $51 million funding package to restart its Paulsens Gold Operation in Western Australia. 

To accommodate possible regulatory delays in approvals required, the $76.49 million market capitalisation company and all parties involved have agreed to extend the completion data of the facilities from 28 February 2024 to 31 May 2024. 

Subject to completing Foreign Investment Review Board and other Australian regulatory approvals, alongside Chinese regulatory approvals,, the funding package will be used to restart Paulsens, as well as be put towards the Coyote Gold Operation and the Kal East Project. 

As previously reported, Black Cat entered into agreements to secure a $60 million funding package, including equity placements of $45 million to wholly owned subsidiaries of China-based lithium investor Fuyang Mingjin New Energy Development, and Southeast Mingqing Chain, alongside a secured debt facility of $15 million with Mingjin. 

On 27 December 2023, the $60 million funding package was restructured with a $9 million unsecured, convertible note facility with Sundy Service Group and a comparable reduction in the equity placements from $45 million to $36 million. 

Black Cat notes $9 million of funding has already been received and applied in refurbishing the Paulsens processing facility, including securing long lead time items and early refurbishment works. 

Black Cat Managing Director Gareth Solly says all parties are seeking to facilitate the Paulsens Operation’s restart in a high gold price environment. 

According to the Perth Mint, the gold price is currently sitting at $3,116.02 per ounce as of today (12 February 2024).

Solly says: “The $9 million of convertible notes funding already received is being applied to ordering long lead time items and the processing facility refurbishment. 

Regular updates will continue to be provided on our progress. The regulatory approval process is progressing satisfactorily. While contingency has been allowed for possible delays, we are continuing to work with parties to accelerate funding within the extension period.” 

The company’s wholly owned Paulsens Gold Operation lies in the Ashburton Basin in the Eastern Pilbara region of Western Australia. 

Black Cat Syndicate is a gold-focused explorer that is advancing to become a multi-operation Western Australian gold producer. The company’s assets comprise 3,485km-square of ‘highly prospective’ tenements.

Write to Aaliyah Rogan at Mining.com.au    

Images: Black Cat Syndicate
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Written By Aaliyah Rogan
Relocated from the East Coast in New Zealand to Queensland Australia, Aaliyah is a fervent journalist who has a passion for storytelling. When Aaliyah isn’t writing stories, she is either spending time with friends and family or down at the beach.