THE BOURSE WHISPERER: Black Cat Syndicate (ASX: BC8) has received placement commitments from professional and sophisticated investors to raise $2.5 million at 20 cents per share.
Black Cat Syndicate said the share placement was strongly supported by investors and directors, thus endorsing the company’s achievements since listing on the ASX in January 2018.
“We are pleased to have sufficient funding to focus on increasing our already robust Resource base at the Bulong gold project, located only 25 kilometres east of Kalgoorlie,” Black Cat Syndicate managing director Gareth Solly said in the company’s announcement to the Australian Securities Exchange.
“The placement was priced at a 2.5 per cent discount to our closing price on 29 April 2019 and a 5.3 per cent premium to our 20-day VWAP.
“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, starting with a new round of drilling at Myhree commencing in mid-May 2019.”
Black Cat has earmarked the funds to advance exploration programs across the Bulong gold project, as well as to provide working capital.
Drilling programs are scheduled to commence mid-May and include fast-tracking extensional and infill drilling aimed at growing and upgrading Resources along the Myhree-Boundary corridor.
Black Cat identified its challenge being to determine the size of the Resource along this 1.6-kilometre-long corridor.
An updated Resource at Myhree is anticipated to be released in July 2019.
Sub-audio Magnetic (SAM) Targets between Myhree and Boundary, will also be drilled.
SAM and gravity surveys will also be conducted over larger areas of Bulong.
These activities all add to Black Cat’s primary intent to rapidly build mine-ready Resources on the doorstep of Kalgoorlie.