- Black Cat Syndicate is expected to raise $5 million for drilling in Kalgoorlie after receiving firm commitments
- A total of 11,627,907 ordinary fully paid Black Cat shares will be issued at a price of 43 cents each
- The company is also currently working away at a feasibility study for the Myhree prospect, located in Kalgoorlie
Black Cat Syndicate has received firm commitments to raise $5 million to fund exploration activities at the Bulong Gold project.
A total of 11,627,907 ordinary fully paid shares will be issued to professional and sophisticated investors at a price of $0.43 per share.
The share placement was strongly supported by investors and directors, providing the endorsement of both Black Cat’s recent achievements and future plans.
Directors and their parties can participate in the placement for $73,000 which is in addition to the recent exercise of options by directors amounting to $533,778.
Black Cat will seek approval for the placement to directors and their related parties at the Annual General Meeting on November 27, 2019.
The funds raised will be used for drilling programs across the Bulong Gold Project as well as to provide working capital.
“We are pleased to have sufficient funding to continue our exploration and resource growth activities as well as complete our ongoing feasibility which will lead to a potential decision to mine in the June 2020 quarter,” Managing Director Gareth Solly said.
“Drilling will recommence at the Myhree Southern Offset and Trump North on 15 October 2019. With this additional funding we are also examining the logistics of accelerating drilling in the Anomaly 38 and Woodline areas.”
The Bulong Gold Project is located 25 kilometres east of Kalgoorlie and covers an area of 82 square kilometres.
It has a history of complex, unconsolidated ownership at Bulong with previous explorers chasing shallow open pits. This has obstructed the scale of production and restricted exploration.
Historic mine production was at high grades with approximately 152,000 ounces produced at greater than one ounce of gold per tonne.
Today there are numerous high-grade open cut and underground targets on mining leases with drill ready targets.
The Myhree feasibility study will also continue to a potential decision to mine and is expected in the June 2020 quarter.
Indvidual elements include metallurgical test-work, geotechnical studies, hydrogeological studies and general permitting.
Sub audio magnetic (SAM) surveys have also been completed to the north of Boundary and the south of Myhree. It is hoped this funding will also allow additional SAM surveys to be completed in early 2020 to extend coverage of the Boundary project.
All of these activities will add to Black Cat’s primary intent to rapidly build mine-ready resources in Kalgoorlie.