28/05/2020 - 14:43

Black Cat, Silver Lake in gold sale

28/05/2020 - 14:43

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Subiaco-based Black Cat Syndicate is set to acquire two gold projects from Silver Lake Resources in a deal worth around $5.2 million.

Black Cat, Silver Lake in gold sale
Black Cat says the purchase will increase its total resources by 145 per cent. Photo: Silver Lake Resources

Subiaco-based Black Cat Syndicate is set to acquire two gold projects from Silver Lake Resources in a deal worth around $5.2 million.

Black Cat wants to purchase the Fingals and Rowe’s Find tenements, both located within 100 kilometres of its Bulong gold project near Kalgoorlie.

The Fingals and Rowe’s Find projects contain 44 tenements, of which 28 were mining leases with minimal barriers to mining, managing director Gareth Solly said.

The projects, which have a combined resource of 425,000 ounces of gold, are set to increase Black Cat’s total resources by 145 per cent, to 719,000oz.

Black Cat’s shares closed up 27 per cent on the news to trade at 62 cents per share.

Under the proposed deal, the company will pay a $50,000 deposit to Silver Lake and issue around 8.4 million Black Cat shares, today valuing the purchase at around $5.2 million.

Mr Solly said the Fingals and Rowe’s Find gold prospects had clear synergies with the company’s Bulong project, located about 25km east of Kalgoorlie.

He said the acquisition would add high-quality exploration targets as well as near-term mining opportunities to the company’s portfolio.

Black Cat will complete its due dilligence by June 27.

The company is currently undergoing a reverse circulation drill program at its Bulong project, with results to be released next month.

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