BLACK CAT SECURES $9M TO FAST-TRACK PAULSENS GOLD OPERATION

Restructured Funding Package Sets Stage for Q3 2024 Restart

Black Cat Syndicate Limited (ASX:BC8) has announced a restructured funding arrangement to expedite the reopening of the Paulsens Gold Operation. The company has modified its initial $60M funding plan, aiming to capitalize on the current high gold price environment.

Funding Highlights:

  • Equity funding from partners Mingjin and Southeast Mingqing has been reduced by $9M, now amounting to $36M.
  • A new $9M Convertible Notes facility has been agreed upon with Sundy Service Group Co Ltd, which will be accessible by 31 December 2023.
  • The $15M Secured Debt Facility terms with Mingjin are maintained.

The inflow from the Convertible Notes will be strategically used to fast-track Paulsens’ operational readiness, focusing on:

  • Procuring essential long lead time items for the processing facility’s refurbishment.
  • Scaling up the refurbishment efforts led by Black Cat’s specialist internal team, which has already identified ways to reduce risk and cost.

Gareth Solly, Black Cat’s Managing Director, emphasized the strategic move: “At a time of high gold prices, we are acting to ensure that the Paulsens restart will occur in the September 2024 quarter. The Convertible Notes funding allows us to order long lead time items as well as stepping up our already successful internal refurbishment program. We look forward to Sundy becoming a shareholder in the Company along with Mingjin and Southeast Mingqing. All parties share our vision of starting our three operations with strong internal cashflows and ongoing Resource growth.”

Read the full announcement

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