Black Cat Syndicate has entered into a binding agreement to acquire the 1.2 million tonnes per annum (Mtpa) Lakewood processing facility from Westgold Resources.
Following Westgold’s recent clarification on the Lakewood sale, Black Cat has now confirmed the transaction details, with the acquisition expected to be completed by March 31, 2025.
The $85 million deal comprises $70 million staged cash payments over nine months and $15 million in Black Cat shares at $0.76 per share, escrowed for 12 months.
The Lakewood acquisition will allow Black Cat to increase its processing capacity by more than 50 per cent, from 0.8Mtpa to 1.2Mtpa, reducing the need for new construction and positioning the company to capitalise on the strong gold price environment.
“This is another transformational step in our plan to produce more gold sooner,” Black Cat managing director Gareth Solly said.
“The acquisition of the 1.2Mtpa Lakewood processing facility accelerates Kal East by 15 months, eliminating the risks associated with construction.”
Located within 40km of Black Cat’s Kal East project and just 6km from Kalgoorie, the facility provides existing infrastructure, including grid power, sealed roads, water and a newly commissioned tailings storage facility.
Black Cat also retains the option to further boost throughput by commissioning Lakewood’s secondary mill.
Beyond processing Black Cat’s own ore, the company plans to explore toll treatment opportunities for third-party ore, including from Westgold, as spare capacity allows.
The acquisition enhances Black Cat’s existing Kal East study, which previously outlined an initial production target of 381,000 ounces at an average 51,000 ounces per annum.
The company is now re-optimising several open pit and underground deposits including Fingals, Majestic, Jones Find, Myhree/Boundary, Imperial and Trojan.
“We have a 1.3Moz resource base near Lakewood with deposits open along strike and at depth,” Solly said. “This acquisition provides a pathway to harvest the cash from Kal East, complemented by ongoing drilling and growth.”
With Lakewood’s recent upgrades, including additional CIL tanks, a larger primary mill motor, and new water bores—Black Cat’s acquisition positions the company as a growing force in Western Australia’s gold sector.
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