THE BOURSE WHISPERER: Black Cat Syndicate (ASX: BC8) received firm placement commitments from professional and sophisticated investors to raise $5 million at 43 cents per share.
Black Cat Syndicate indicated the funds will be used for drilling programs across the company’s Bulong gold project in Western Australia.
The company anticipates drilling programs to commence in October to include extensional drilling on the new Myhree Southern Offset target, extensional drilling at Trump North, infill drilling aimed at upgrading the existing Resources at Myhree, and accelerated exploration drilling of Sub-audio Magnetic (SAM) targets in the Greater Woodline area, including Anomaly 38.
The company said the Myhree Feasibility Study will continue to a potential decision to mine, expected in the June 2020 quarter.
Individual study elements include metallurgical testwork, geotechnical studies, including diamond drilling, hydrogeological studies and general permitting.
SAM surveys have been completed to the north of Boundary and to the south of Myhree and the company has interpretation and target generation in these areas underway.
New targets near and along strike of existing Resources will be prioritised for drilling.
The new funding will also allow additional SAM surveys to be completed in early 2020 to extend coverage over a larger portion of the Bulong project.
“We are pleased to have sufficient funding to continue our exploration and Resource growth activities as well as complete our ongoing Feasibility Study which will lead to a potential decision to mine in the June 2020 quarter,” Black Cat Syndicate managing director Gareth Solly said in the company’s announcement to the Australian Securities Exchange.
“The placement was priced at a five per cent discount to our closing price on 30 September 2019.
“This is a strong endorsement of the results we have achieved and the inherent value investors see in Black Cat.
“We expect to have strong news flow over the balance of 2019.”