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Catalyst Metals (ASX:CYL) has entered into binding agreements to make it the largest landholder in the rich Bryah Basin in Western Australia.
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The company entered into deals with Star Minerals and Albright Metals to acquire each company’s Bryah Basin projects. Together, these projects comprise approximately 1,100sqkm of exploration tenure. That has taken its Bryah Basin acreage position to 2,280 square kilometres of tenements.
Craig Dingley, head of corporate development and investor relations at Catalyst, told shareholders that with the existing Catalyst tenure and recently applied for tenements, the company has created an almost contiguous 190km tenement package with direct links back to the Plutonic processing plant.
“The transactions provide Catalyst with an affordable entry price into this prospective region, which has clear regional synergies with the Plutonic belt.”
Catalyst will acquire Star’s West Bryah project for a $2.75M consideration, comprising both cash and scrip. The transaction with Star incorporates a toll treating agreement, with Catalyst providing excess capacity at the Plutonic processing plant for Star to toll treat its Tumblegum South ore.
Catalyst has also agreed to subscribe for a $1 million placement in Star shares, equating to approximately 7.0% of Star’s issued capital. Catalyst will also receive a further approximately 11.1 million, five-year options in Star.
The transaction with Albright will see Catalyst acquire approximately 50% of the tenements comprising that company’s Bryah Project for $1.8 million, with an option to acquire the remaining 50% for a further $2.2 million.
Bryah Basin is at the south-western edge of Catalyst’s existing tenements and is connected to the Plutonic processing plant through Catalyst’s 70km haul road.
The basin is a 4.5M ounce gold and copper belt that sits adjacent to Catalyst’s Plutonic Gold Belt. It’s historically hosted several high-quality gold and copper deposits, including Old Highway, DeGrussa, Monty and Starlight.
CYL is down -2% to $7.32 today.
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