Catalyst Metals (ASX: CYL)
Has agreed to sell its Henty Gold Mine In Tasmania to Kaiser Reef (ASX:KAU). This streamlines its asset portfolio to focus on core projects.
Catalyst has retained exposure to Henty’s upside while backing a new management team which will have greater focus on operational execution.
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Henty Gold Mine – Tasmania
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| Catalyst Metals | ASX : CYL | |
| Stage | Exploration / development | |
| Metals | Copper / Gold | |
| Market cap | A$1 Billion @ A$4.63 | |
| Location | Murchison, Western Australia | |
| Website | https://catalystmetals.com.au |
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Catalyst Metals Has Agreed To Sell Its Henty Gold Mine In Tasmania
Catalyst Metals (ASX: CYL) has agreed to sell its Henty Gold Mine In Tasmania to Kaiser Reef (ASX:KAU). This streamlines its asset portfolio to focus on core projects.
Catalyst has retained exposure to Henty’s upside while backing a new management team which will have greater focus on operational execution.
• Catalyst has agreed to sell the Henty gold mine in Tasmania to Kaiser Reef
• The transaction has various value components that in totality appeal to Catalyst
• In exchange for Henty, Catalyst will receive:
o A$15m upfront cash consideration
o A$4m to be reimbursement from environmental bonding payments
o A$14m in deferred gold consideration (3,000oz of future gold production)
o A$14m via an ongoing equity interest (19.99% of the enlarged Kaiser)
o 0.5% NSR royalty on gold produced from the Darwin Extension Target Zone
o An option to acquire 50% interest in a Victorian processing plant situated 100km
from Catalyst’s 26 g/t gold Resource2 at the Four Eagles gold project
• The reasoning behind the transaction for Catalyst is threefold:
o It frees up management’s time to focus on Plutonic and Western Australia
o It backs a new management team at Henty who should be better able to dedicate
the time required to realise Henty’s upside
o Secures a processing solution, and a future, for Catalyst’s Four Eagles gold project in
Victoria in order to create value for our shareholders in an asset that was not being
valued by the broader market
• There are a number of challenges to operating in Victoria. By entering into this option
agreement, Catalyst has, for no cost, solved one of these key hurdles
Recent highlights
- The company achieved a significant milestone by processing the first ore from its Plutonic East underground mine, marking a pivotal step in its expansion strategy.
- Reflecting its growth and market presence, Catalyst Metals has been added to the S&P/ASX 300 Index, enhancing its visibility among investors.
- The company has successfully repaid all inherited debts, strengthening its financial position and enabling greater investment in growth initiatives.
- Catalyst has initiated an extensive exploration program in the Plutonic Gold Belt, aiming to double its gold production to 200,000 ounces annually over the next three years.
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Catalyst’s Managing Director & CEO, James Champion de Crespigny, commented:
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“Catalyst believes focus is important. 18-months ago, Catalyst committed itself to Western Australia by consolidating the Plutonic Gold Belt. Henty’s operating nature means the timebrequired for it to realise value and upside of Henty was costly.
“This transaction allows Catalyst to focus on Western Australia while still sharing in the upside that can come from a new, more focused, operating team.
“The value proposition for Catalyst is compelling due to a novel transaction structure.
“Consideration is in two parts – more easily quantifiable cash and trailing payments and the harder to quantify equity in Kaiser and option over a Victorian mill.
“The equity interest is attractive in this gold price environment while the option to solve a processing problem in Victoria has, we think, considerable value to our shareholders on an asset that is not being valued by the broader market.”
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About Catalyst Metals Limited
An Australian gold exploration and production.
The company has established a dominant presence in several prolific gold belts across Australia, focusing on the exploration, development, and operation of gold projects.
Catalyst’s key assets include the Plutonic Gold Mine in Western Australia, and significant exploration projects in Victoria’s Bendigo Goldfields.
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To read the full news release please click HERE
The live Spot gold price can be found HERE
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Disclosure
At the time of writing the author holds shares in Catalyst Metals.
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