AFR: Black Cat raising $30m to buy Northern Star gold project
Listed gold explorer Black Cat Syndicate was crossing fund managers on Wednesday morning for a $30 million to $35 million capital raise for an acquisition.
It wanted to buy listed peer Northern Star Resources’ Coyote/Western Tanami and Paulsens gold operations.
The raise’s exact terms were yet to be decided but it was expected to launch on Wednesday morning.
The two companies said Black Cat would pay up to $44.5 million for the two assets split as $24.5 million in cash, $10 million in post-sale production target hurdles and the rest in Black Cat scrip.
Black Cat’s flagship project is Kal East in Western Australia’s Kalgoorlie region. It has plans to build a central processing facility for Kal East about 50 kilometres from Kalgoorlie.
Petra Capital was running the talks, and the equity raise component was expected to land around $30 million.
Source: The Australian Financial Review
