Catalina Resources (ASX:CTN) has acquired the drill-ready Breakaway Dam Copper Project in Western Australia to support its growth in the copper space.
Under the terms of the agreement, Catalina will acquire 100% of the Breakaway Dam project in addition to divesting its Laverton project portfolio to Forrestania Resources (ASX:FRS).
Consideration of the agreement will be satisfied through the issue of Catalina equity comprising 13.8 million fully paid ordinary shares, issued at a deemed price of $0.069 per share; 6.9 million options exercisable at $0.115 with an expiry of 22 May 2027; 9.6 million options exercisable at $0.23 with an expiry three years from date of issue; and 4.1 options exercisable at $0.345 with an expiry three years from date of issue.
The structure of this transaction provides Catalina with a scalable funding pathway through a multi-tranche option framework.
Breakaway Dam is a copper-dominant volcanic massive sulphide (VMS) system with demonstrated exploration. The project is drill-ready and has a well-defined pipeline of drill targets.
Executive Director Ross Cotton says that the transaction “reflects a disciplined and selective approach to adding copper exposure to Catalina’s portfolio”.
“Breakaway Dam stood out as an opportunity with clear exploration momentum, a well-defined pathway for advancement, and the potential to grow through a staged, considered approach,” Cotton says.
“Importantly, it complements the company’s existing gold assets and supports a broader strategy focused on building a balanced and scalable exploration portfolio.”
The proposed acquisition gives Catalina direct exposure to the copper market during a time of global supply constraints and long-term demand drivers. The copper play is supported by the board who have a proven track record in the industry.
Chairman Karl Simich founded Sandfire Resources (ASX:SFR), which has grown from exploration and discovery into a global copper producer.
Catalina has also executed a binding agreement to acquire 100% of Auric North who holds a contiguous district-scale portfolio of gold exploration projects in Western Australia.
This acquisition is a way for Catalina to broaden its footprint in this sector across the state.
Catalina is exploring and advancing a number of gold and multi-commodity projects in Western Australia and New South Wales.
Write to Amy Rotman at Mining.com.au
Images: Catalina Resources
