Black Cat Syndicate (ASX:BC8) has replaced its $60 million funding package to restart its Paulsens Gold Operation in Western Australia.
The $72.25 million market capitalisation company has entered into agreements with Sundy Service Group (HK:09608) in which Sundy will provide $45 million to restart Paulsens. Of this $9 million has already been provided with a further $6 million expected in May 2024.
Subject to shareholder and regulatory approvals, Sundy will become a 40% shareholder in the company.
Richlink Capital is acting as financial advisor to Black Cat including the restructuring of the funding package. Richlink is a diversified financial services and investment management group with offices in Beijing, Shenzhen, Xiamen, Hong Kong, and Sydney.
Managing Director Gareth Solly says this funding, which is on the same terms as its previously announced funding package, facilitates the restart of Paulsens in a ‘high’ gold price environment.
“The convertible note funds are already being applied to ordering long lead time items and the processing facility refurbishment. Regular updates will continue to be provided on our progress.
In the meantime, the parties are confident that the required regulatory approvals can be accelerated given that considerable progress has already been made on that front.
With activity ramping up at Paulsens and a clear plan on funding now in sight, this is an exciting time for Black Cat.”
The aforementioned funding package was subsequently varied in February 2024 including equity placements of $36 million with Fuyang Mingjin New Energy Development Co and Southeast Mingqing Supply Chain (Fuyang) in equal proportions.
It also includes a secured debt facility to the tune of $15 million provided by Mingjin and unsecured convertible notes worth $9 million with Sundy. Funds from the unsecured convertible notes have been received.
The company notes preliminary discussions with potential debt providers ensure confidence that such a facility will be available.
Black Cat Syndicate is a Western Australian gold producer encompassing a 3,485km-square area.
Write to Aaliyah Rogan at Mining.com.au
Images: Black Cat Syndicate
