Join our daily newsletter At The Bell to receive exclusive market insights
- Black Cat Syndicate (ASC:BC8) executes formal agreements in relation to its $60 million funding package, aimed at reigniting the Paulsen’s gold operation
- BC8 has its sights set on establishing its presence in three thriving gold regions within WA
- $45 million in equity placements made into wholly owned subsidiaries of Mingjin and Fuyang
- Additionally, a secured debt facility of $15 million with Mingjin has been secured
- BC8 shares are down 2.63 per cent, trading at 18.5 cents at 12:39 pm AEDT
Black Cat Syndicate (ASC:BC8) has executed formal agreements in relation to its $60 million funding package with the aim of reigniting Paulsen’s gold operation in Western Australia.
The strategic initiative is driven by the company’s focus on establishing a dominant presence in three thriving gold regions within Western Australia, including Paulsen’s in the Pilbara, the Coyote gold operations in West Tanami, and the Kal East project east of Kalgoorlie.
The package consists of two subscription agreements, a loan facility agreement, and a general security deed.
“We are pleased to have formalised our agreements with Mingjin and Southeast Mingqing in a short period of time,” BC8 Managing Director Gareth Solly said.
“All parties have shown commitment to progressing the funding package and restarting Paulsen’s in the shortest possible timeframe.”
Within the package, $45 million in equity placements will be made into wholly-owned subsidiaries of Mingjin and Fuyang.
Additionally, a secured debt facility of $15 million with Mingjin has been secured.
However, the execution of the funding is contingent on meeting specific conditions, including approval from the Foreign Investment Review Board, which includes Chinese regulatory authorities for overseas direct investment (ODI) and other Australian regulatory bodies.
Mingjin and Southeast Mingqing must also secure regulatory approvals for overseas direct investment.
An amount of $60 million will be deposited with Chinese banks upon application, to be subsequently transferred to Black Cat following ODI approval.
Black Cat will seek shareholder approval at its AGM in late November 2023.
BC8 shares were down 2.63 per cent, trading at 18.5 cents at 12:39 pm AEDT.
