Just a month after first announcing its plans for a $60 million funding package, gold explorer Black Cat Syndicate (ASX:BC8) has executed formal agreements with Chinese industry investors.
Subsidiaries of Fuyang Mingjin New Energy Development Co and Southeast Mingqing Supply Chain will now seek approvals from the Australian Foreign Investment Review Board (FIRB) and Chinese regulatory authorities for the deals over late October and early November.
The funding package includes $45 million in equity placements to Mingjin and Southeast Mingqing — with new shares to be issued to the investors at $0.225 per share — and a $15 million debt facility from Mingjin.
Nevertheless, before the funding package can move forward, Black Cat must land shareholder approval at a general meeting slated for late November.
Provided the approvals process goes ahead without a hitch, Black Cat expects to put the fresh funds towards some deferred payments of $10 million plus interest owing to Northern Star Resources (ASX:NST) in March next year before launching into development work at its Paulsens Gold Operation in WA’s Pilbara region from March to September 2024.
At Paulsens, the company plans to progress with the refurbishment of the processing facility and the infrastructure in the project area, underground development, and ore stockpiling and commissioning work.
Black Cat Managing Director Gareth Solly says all parties involved in the funding agreement have shown a commitment to progressing the package and restarting Paulsens in ‘the shortest timeframe possible’.
“In the period up to completion, we will be building on the foundation laid in our July 2023 Paulsens Restart Study. In November 2023, there will be an update to the Restart Study, which is targeting increased production, improved recoveries, lower upfront capital cost and stronger cashflow.
We will also be progressing the regulatory items required for completion.”
“In November 2023, there will be an update to the Restart Study, which is targeting increased production, improved recoveries, lower upfront capital cost and stronger cashflow”
Upon the completion of the funding package, Mingjin and Southeast Mingqing will each hold an interest of roughly 19.9% in Black Cat.
As the funding work progresses, Black Cat is pressing on with a planned resource upgrade at Paulsens, which is still slated for before the end of October. This comes amid ongoing regional exploration work from October through to the end of the year.
Black Cat’s Paulsens project lies about 180km west of Paraburdoo in Western Australia and comprises an underground mine, a 450,000-tonne-per-annum (tpa) processing facility, a 128-person camp, numerous open pits, and other related infrastructure.
The company also owns the Coyote Gold Operation in WA’s west Tanami region and the Kal East Project east of Kalgoorlie.
Black Cat Syndicate had $4.656 million cash and cash equivalents at hand as of 30 June 2023, according to its latest quarterly report. The company has a market capitalisation of $57.14 million.
Write to Joshua Smith at Mining.com.au
Images: Black Cat Syndicate
