Kaiser to acquire Henty gold mine in Australia from Catalyst for $19.8m

Australia-based Kaiser Reef has entered into a definitive statement with Catalyst Metals to get the Henty golden excavation and associated exploration tenements successful north-western Tasmania successful a woody valued astatine A$31.6m.

Under the deal, Kaiser volition marque an upfront outgo of A$15m and contented A$16.6m successful shares, offering Catalyst a 19.99% involvement successful the company.

The woody besides includes deferred payments of 50oz per month, up to a maximum of 3,000oz, a royalty statement and reimbursement of A$3.9m successful biology enslaved payments.

Additionally, the statement includes an enactment statement allowing Catalyst to signifier a associated task (JV) with Kaiser for the Maldon processing works successful Victoria. The enactment tin facilitate works enlargement and summation the standard of operation.

Following the acquisition, Kaiser's endeavor worth volition scope A$67m, encompassing 3 golden mines, including 1 nether attraction and attraction and 2 golden processing plants.

Kaiser managing manager Jonathan Downes said: “Catalyst has done a large occupation gathering a profitable cognition astatine Henty implicit the past 4 years, with wide accumulation and excavation beingness visibility, positive immoderate large exploration targets.

“Kaiser volition proceed to re-invest into Henty and physique connected what Catalyst has already achieved. We are precise pleased to person Catalyst’s continued engagement and vulnerability to the upside astatine Henty, some arsenic Kaiser’s large shareholder and done their committee representation.

“The enactment for Kaiser and Catalyst to participate into a 50/50 JV concern astatine the Maldon processing works gives some parties a wide pathway that supports their Victorian ambitions. A associated task tin unlock the benefits that would travel with works enlargement and accrued operational scale, and we look guardant to moving with Catalyst arsenic JV partners if they execute the option.”

Kaiser has besides announced that it has secured binding commitments for A$30m done a two-tranche placement of caller shares to money the acquisition.

The funds volition screen the currency information and transaction costs and supply moving superior for maturation initiatives.

The commitments see A$9.1m secured nether existing capableness with the remaining A$20.9m pending shareholder support successful May.

An further A$10m has been secured done a elder secured golden indebtedness and an unsecured prepayment installation with Auramet International.

A wide gathering of shareholders is scheduled for aboriginal May 2025 to o.k. the transaction and related backing arrangements.

The Henty golden excavation is simply a golden accumulation level with a humanities output of 1.4 cardinal ounces astatine 8.9 grams per tonne (g/t). The existent ore reserve of the excavation is 1.2 cardinal tonnes astatine 4g/t for 154,000oz.