Black Cat Syndicate has secured $20 million from investors to fast-track the development of its Kal East gold project.
Black Cat Syndicate has secured $20 million from investors to ramp-up the development of its Kal East gold project.
Black Cat says the placement is integral in the company’s low-capex, rapid start-up strategy for Kal East, which has historically produced more than 600,000 ounces of gold.
The funds raised will be applied to extension and exploration drilling, feasibility studies, and mill equipment purchases.
In March, Black Cat purchased a 1.5 million tonnes per annum milling facility, which included two ball mills and about 60 per cent of the equipment required to run the facility, for about $1.2 million.
Black Cat will begin the removal and relocation of the facility in the June quarter.
It expects first production at Kal East in the second half of calendar 2022.
Managing director Gareth Solly says the company is due to announce resource upgrades from the Kal East project's Fingals deposit this month.
Black Cat will issue about 27.6 million shares under the placement, priced at 67 cents each. It represents a 13.5 per cent discount to the company’s last closing price.
Its directors plan to subscribe for about $1.4 million worth of shares each, subject to shareholder approval.
Petra Capital is acting as lead manager and bookrunner to the placement.
On Wednesday, Black Cat shares closed down 7 per cent to trade at 72 cents.