Hancock Prospecting is no longer a substantial shareholder in small cap gold producer Catalyst Metals (ASX:CYL) with the on-market sale of its entire investment.
The Gina Rinehart-led company sold the remainder of its roughly 11.7 million worth of shares for $8.7 million.
The entire shareholding was picked up by directors, management, and institutional investors of Catalyst.
The change of ownership was welcomed by the market, with shares climbing to an intra-day peak of $0.87 – a gain of over 9%.
Catalyst Managing Director James Champion de Crespigny believes the change in the ownership structure to a broader support base of institutional investors leaves the company open for the future development of underground mining at its Western Australian and Tasmanian operations.
“This show of support is encouraging at a time of change for the company,” he says.
Hancock Prospecting has been an extraordinary supporter of Catalyst since 2015, when it first partnered in a joint venture at Catalyst’s Four Eagles Gold Project immediately north of the historic Bendigo Goldfields.
“Since then, Hancock has not only been a considerable contributor to Catalyst, but also to the community in and around Bendigo. That support for the community and the Four Eagles joint venture remains.”
Catalyst Metals is a gold producer and explorer focused on its multiple assets spread across Australia that are considered ‘highly prospective’ for gold.
Write to Adam Drought at Mining.com.au
Images: Catalyst Metals
