Black Cat Syndicate (ASX:BC8) has agreed to terms to purchase Westgold Resources’ (ASX:WGX) Lakewood processing facility for $85 million as part of the group’s intention to accelerate its gold production plans.
The deal includes an initial $70 million cash component paid in stages over nine months as well as $15 million in Black Cat shares.
Located 6km southeast of Kalgoorlie in Western Australia, the acquisition according to Black Cat will boost gold processing capacity from 800,000 tonnes per annum to 1.2 million tonnes per annum.
Managing Director Gareth Solly said the acquisition of the Lakewood processing facility accelerates the company’s Kal East Gold operation by 15 months, eliminating the risks associated with construction.
“We have a 1.3 million ounce resource base near Lakewood with deposits open along strike and at depth. This acquisition provides a pathway to harvest the cash from Kal East, complemented by ongoing drilling and growth,” Solly said.
Lakewood’s infrastructure includes a newly commissioned tailings facility and is expected to be integrated with the group’s 100% owned Kal East Gold Project.
Black Cat, which has a market capitalisation of $436.8 million, owns 4,890km2 of ground in Western Australia.
First gold from the Myhree open pit at Kal East was mined in the second half of 2024, followed by first gold being poured at Paulsens in December 2024.
The gold price continues to mark new records and was fetching around US$2,945 ($4,635) an ounce as of 2.30pm AEDT on Tuesday (25 January).
Write to Dan Petrie at Mining.com.au
Images: Black Cat
