Gold project developer Black Cat Syndicate (ASX:BC8) has restructured a $60 million funding package to ensure it can restart its Paulsens Gold Operation in Western Australia by the September quarter of 2024.
The company in October formalised the funding arrangement under which Chinese industry investors Fuyang Mingjin New Energy Development Co and Southeast Mingqing Supply Chain would together invest $45 million through equity placements alongside a $15 million debt facility from Mingjin.
Now, Black Cat has reduced the $45 million equity funding segment of this package to $36 million and instead secured a $9 million convertible note facility from China-based property management group Sundy Service Group Co (HK:09608).
The funds from this convertible note arrangement will be available before the end of 2023, meaning Black Cat, which has a $77.46 million market capitalisation, can get a headstart on securing long lead time items for the refurbishment of the Paulsens processing facility, including cone crushers and structure, mill liners, Knelson concentrators, and other electrical components.
Black Cat, which has a $77.46 million market capitalisation, says its specialist internal team has already started ramping up the processing facility refurbishment.
The terms of the $15 million debt facility from Mingjin remain unchanged.
Black Cat Managing Director Gareth Solly says the move to accelerate the Paulsens restart work comes at a time of high gold prices.
“The Convertible Notes funding allows us to order long lead time items as well as step up our already successful internal refurbishment program.
We look forward to Sundy becoming a shareholder in the company along with Mingjin and Southeast Mingqing. All parties share our vision of starting our three operations with strong internal cashflows and ongoing resource growth.”
“The Convertible Notes funding allows us to order long lead time items as well as step up our already successful internal refurbishment program”
Investment banking and asset management firm Richlink Capital acted as an adviser to Black Cat in relation to the convertible notes funding deal.
Black Cat Syndicate had just under $4.8 million in cash at hand as of 30 September 2023.
Write to Joshua Smith at Mining.com.au
Images: Black Cat Syndicate
