Catalyst Metals (ASX:CYL) raises $22m to fund Plutonic acquisition

• Catalyst Metals (CYL) raises $22 million through a share placement to complete its acquisition of the Plutonic gold project in Western Australia
• The placement was cornerstoned by Hancock Prospecting and supported by major shareholders of Superior Gold and Vango Mining’s largest shareholder
• It will see CYL issue 22 million new shares at $1 per share
• The raise satisfies a key condition for the acquisition of Superior Gold, and CYL says the proceeds will be used to accelerate exploration across its portfolio
• Shares in CYL are down 9.38 per cent, trading at $1.16 at 1:19 pm AEDT

Catalyst Metals (CYL) has raised $22 million through a share placement in an effort to complete its acquisition of the Plutonic gold project in Western Australia.

The company will issue institutional and sophisticated investors 22 million new shares at an issue price of $1.

The placement was underpinned by cornerstone investor Hancock Prospecting, together with major shareholders of Superior Gold and the largest shareholder of Vango Mining.

“The strong support for the placement reflects the outstanding opportunity we have to generate growth and create value through our assets in three key Australian gold belts,” Catalyst Managing Director James Champion de Crespigny said.

Catalyst confirmed the proceeds would go towards accelerating development and exploration activities across the Plutonic-Marymia gold belt, following its takeover of Vango Mining and pending acquisition of Superior Gold.

The placement satisfies a key condition of Catalyst’s proposed acquisition of Superior to be implemented by way of a Canadian statutory plan of arrangement.

The settlement of the new shares under the placement is scheduled to occur on March 16, with trading of the shares expected to commence the following day.

Shares in CYL were down 9.38 per cent and trading at $1.16 at 1:19 pm AEDT.