Western Australian gold explorer Black Cat Syndicate has announced its plans to roll out a major goldfield expansion thanks to a $60 million Chinese investment package.
The cash injection will go towards restarting Black Cat’s Paulsens gold operation in the Pilbara and the Coyote gold operation in west Tanami in the Northern Territory, as well as developing the Kal East project east of Kalgoorlie, WA.
The funding package has been agreed with Fuyang City, Anhui Province based technology and investment group, Fuyang Mingjin New Energy Development Co. (Mingjin) and Fuyang City, Anhui Province based supply chain management group Southeast Mingqing Supply Chain Co. (Southeast Mingqing).
“This funding package is a major milestone as we drive toward Black Cat’s vision of being the dominant player in three prolific gold districts,” Black Cat managing director Gareth Solly said.
Black Cat’s main focus is the Paulsens deposit, with generated cash flow from the operation being used for the company’s other sites.
“Our robust studies at Coyote and Kal East emphasise the size of the prize,” Solly said.
“This strategy requires minimal shareholder funding to build our vision of being a 150,000 ounce per year producer.”
Black Cat acquired the Paulsens deposit from Northern Star Resources in June 2022, who had the mine in care and maintenance since 2017.
The company intends to see first gold extracted at the mine in the September 2024 quarter following a refurbishment program commencing earlier in 2024.
“At a time of high gold prices, predevelopment projects with low initial capital, low operating costs, strong growth potential and largely installed infrastructure are few and far between,” Solly said.
“Both Mingjin and Southeast Mingqing share our vision and we look forward to both companies becoming substantial shareholders in Black Cat.”
The announcement follows an $8.3 million placement commitment from the sale of new fully ordinary shares in late August.
Together, the two investments will go towards the restart of the Paulsens gold mine and flow on to the Tanami and Kalgoorlie deposits.
