THE BOURSE WHISPERER: Black Cat Syndicate (ASX: BC8) greeted Day Two of the 2021 RIU Sydney Resources Roundup by announcing it has received firm commitments from sophisticated and professional investors in respect of a $20 million placement.
Black Cat Syndicate raised the funds at 67 cents per share and indicated these will be applied to extension and exploration drilling, mill equipment purchases, feasibility studies and other working capital for the company’s Kal East gold project in Western Australia.
The company explained the placement is an integral part of its low-capex, rapid start-up strategy for the Kal East project.
In March 2021, Black Cat acquired a 1.5 million tonnes per annum milling facility, including two ball mills and equipment required to run the facility, spending an extra $1.24 million.
“We are delighted with the support for the Placement and welcome a number of highly credentialed Australian and offshore institutional investors to the register,” Black Cat Syndicate managing director Gareth Solly said in the company’s ASX announcement.
“On behalf of the Board I would also like to thank our existing shareholders for their ongoing support.
“The Placement will allow the company to progress its start-up strategy, targeting first production in the second half of 2022.
“In the June 2021 quarter, we will commence the removal and relocation of our 1.5 million tonnes per annum facility.
“In May 2021, we are anticipating announcing Resource upgrades from the Fingals Mining Centre.
“Furthermore, we look forward to updating investors with results from our extensive drilling programs and ongoing Resource extensions and upgrades.”
TO READ THE FULL ANNOUNCEMENT: CLICK HERE