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- Black Cat Syndicate (BC8) receives firm commitments from investors to raise $17 million to accelerate drilling at Paulens in Western Australia
- The company intends to raise the money via a placement, issuing approximately 42 million new shares at 40 cents each, with a cornerstone investment expected from Collins St Value Fund
- The company’s directors will then look to raise a further $165,000, subject to shareholder approval at a general meeting in early March 2023
- Funds raised from the placement will be applied towards positioning Paulsens and Coyote for restart
- Shares in Black Cat are down 7.78 per cent, trading at 41.5 cents as of 1:30 pm AEDT
Black Cat Syndicate (BC8) has received firm commitments from institutional and sophisticated investors to raise $17 million via a placement.
The placement will issue approximately 42 million new shares at 40 cents each, to be completed in a single tranche.
The issue price represents a 11.1 per cent discount to the last close on January 16, and a 6.9 per cent premium to the 30-day volume weighted average price (VWAP).
The company’s directors have also applied for an additional 412,500 shares, raising a further $165,000, subject to shareholder approval at a general meeting in early March 2023. The directors also indicated the intention to exercise a further 997,778 options for $199,556.
The company said funds raised from the placement will be applied towards preparing Paulsens and Coyote for restart, with an immediate focus on extension and discovery drilling at Paulsens.
“The placement will allow us to advance our production restart objectives by significantly accelerating our resource growth activities at Paulsens,” Managing Director Gareth Solly said.
“We have one of Australia’s highest-grade deposits at Coyote with 356 thousand ounces at 14.6 grams per tonne (g/t) gold and a restart study, and required additional drilling will also be undertaken.
“We look forward to completing a resource update at Paulsens in early February 2023 and providing ongoing updates as we progress our plans and drilling programs during 2023.”
An update to the high-grade underground resource at Paulsens is expected to be completed in early February 2023.
This update will include a reinterpretation of the current resource based on the new geology model, as well as the initial holes drilled and assayed by Black Cat.
Additional resource upgrades at Paulsens and Coyote will be ongoing throughout 2023.
Shares in Black Cat were down 7.78 per cent, trading at 41.5 cents as of 1:30 pm AEDT.
