With the acquisition of Vango, Catalyst will obtain access to the Marymia gold project, a highly prospective gold deposit in Western Australia
Australian mineral exploration company Catalyst Metals has signed a bid implementation agreement (BIA) to acquire Vango Mining for an implied value of $66m.
Under the terms of the BIA, Vango shareholders are expected to receive five Catalyst shares for every 115 Vango shares held, which implied an offer value of $0.052 per Vango share.
With the acquisition of Vango, Catalyst will obtain access to the Marymia gold project, a highly prospective gold deposit in Western Australia.
The project comprises more than 40km of under-explored strike along the Marymia-Plutonic gold belt, said the company.
In addition, the deal will allow Catalyst to apply its exploration expertise and experience to carry out an aggressive exploration programme across Vango’s prospective tenements.
Vango’s tenements host an existing Resource of 1Moz at 3.3 g/t and are located immediately adjacent to the operating Plutonic gold mine.
Upon completion of the transaction, Vango shareholders are expected to own up to 35.7% of the enlarged Catalyst.
Vango executive chairman Bruce McInnes said: “Bringing together Marymia’s huge exploration upside and the funding and technical knowledge of Catalyst makes enormous sense for all shareholders.
“It is the ideal recipe to create value for all Vango shareholders and therefore the Board supports the bid unanimously.”
In addition to the BIA, Catalyst has signed a binding term sheet with Collins Street Value Fund (CSVF), a strategic investor in Vango.
Pursuant to the terms of the agreement, CSVF will exchange the existing Vango convertible notes for new convertible notes, subject to Catalyst acquiring 100% of Vango Shares.
Upon completion of the transaction, the enlarged Catalyst will control three high-grade, highly prospective and strategic gold belts in Australia.
It will obtain a large, contiguous tenement package with a 75km strike in Victoria, and a strategic tenement package covering 25km of the under-explored Henty fault in Tasmania, in addition to the Marymia gold project in Western Australia.
Argonaut PCF served as a financial advisor, Gilbert + Tobin as a legal advisor, and Entech as a technical consultant to Catalyst, while Edwards Mac Scovell served as a legal advisor to Vango on the transaction.
Catalyst managing director and CEO James Champion de Crespigny said: “This transaction is important for Catalyst and Vango shareholders. It turns a new leaf for the future of both companies.
“The combined group will have the financial strength and technical expertise to unlock the value of the prospective Marymia tenements.
“There is immense potential to create significant value for all shareholders by driving an aggressive exploration strategy on what has already proven to be a +15Moz Australian gold belt.”