- Black Cat Syndicate (BC8) has received strong commitments to raise $20 million via a share placement
- The funds raised are set to support exploration, mill equipment purchases, feasibility studies and working capital
- The placement supports the company’s low-capex, rapid start-up strategy for the Kal East Gold Project, which returned high-grade results last month
- Sophisticated and professional investors have committed to the issue of approximately 27.5 million shares at 67 cents each
- Directors and their related parties are seeking to participate in the placement for an amount of $1.41 million, subject to shareholder approval
- Shares resumed trade this morning, 4.5 per cent lower at 74 cents each
Black Cat Syndicate (BC8) has received strong commitments to raise $20 million via a share placement.
The placement forms an integral part of the company’s low-capex, rapid start-up strategy for the Kal East Gold Project which returned high-grade results last month.
BC8 said the funds raised will go towards extension and exploration drilling, mill equipment purchases, feasibility studies and other working capital.
Sophisticated and professional investors have committed to the issue of approximately 27.5 million shares at 67 cents each.
The issue price represents a 13.5 per cent discount to the last close price and a 14.8 per cent discount to the 10-day volume-weighted average price.
Directors and their related parties are seeking to participate in the placement for an amount of $1.41 million, subject to shareholder approval which will be sought at a meeting which is yet to be advised.
Managing Director, Gareth Solly and Non-Executive Director, Lee Davis will also exercise a combined total of 550,000 options early for an additional $110,000.
Gareth said the placement would allow the company to progress its start-up strategy, targeting first production in the second half of 2022.
“In the June 2021 quarter, we will commence the removal and relocation of our 1.5 million tonnes per annum ‘milling’ facility. In May 2021, we are anticipating announcing Resource upgrades from the Fingals Mining Centre,” he explained.
Petra Capital acted as sole lead manager and sole bookrunner to the placement.
Shares resumed trade this morning, 4.5 per cent lower at 74 cents each at 12:07 pm AEST.