Black Cat Syndicate (ASX:BC8) has received firm commitments from institutional and sophisticated investors to raise $8.3 million through a share placement.
The $70.72 million market capitalisation company says its directors have applied for $680,000 in the placement, subject to shareholder approval, bringing their investment to the company to $8.7 million to date.
The placement involves the issue of just under 36.9 million new fully paid ordinary shares at an issue price of $0.225 per share. This price represents a 15.1% discount to Black Cat’s last closing price on 24 August 2023 and a 23.2% discount to its 5-day volume weighted average price (VWAP).
Black Cat will also issue around 18.45 million attaching options on the basis of one new option for every 2 shares issued pursuant to the placement, subject to shareholder approval. The options will be exercisable at $0.3375 per option and will expire in 2 years.
The proceeds from the placement will be used for drilling and evaluation activities at the Paulsens Operation in Western Australia, where there remains ‘significant’ untapped potential, according to Black Cat.
These activities will target a substantial increase in cashflow over the Paulsens Restart Study. In addition, the funds will also be used to advance discussions with a number of debt providers.
Commenting on the placement, Black Cat Syndicate Managing Director Gareth Solly says: “We are excited to continue to explore at Paulsens. The recent studies we have undertaken give us an enviable baseline for the further optimisation of production outcomes and operating cashflow.
“We are excited to continue to reinvent this iconic mine, where projected future cashflow is expected to increase substantially, together with a reduction in upfront capital expenditure“
We are excited to continue to reinvent this iconic mine, where projected future cashflow is expected to increase substantially, together with a reduction in upfront capital expenditure.
This potential is reinforced by the recent discovery of the main zone extension, and the bonanza grades that we are seeking immediately adjacent to areas of the current mine plan.”
Black Cat says it has received indicative term sheets from numerous debt financiers for the restart of Paulsens, with these discussions continuing.
The company adds the placement proceeds will generate a ‘strong stream’ of newsflow for the coming period.
Black Cat Syndicate is a mineral exploration company focused on its 3 wholly owned operations, namely the Paulsens, Coyote, and Kal East gold projects.
Write to Aaliyah Rogan at Mining.com.au
Images: Black Cat Syndicate
