Catalyst Metals has announced that Gold Exploration Victoria (GEV) has agreed to subscribe for a $13.02m placement of Catalyst shares at a subscription price of $1.50 per share.


Image: Catalyst secures $13m placement with GEV. Photo courtesy of rawpixel on Unsplash.

The placement comprises 8,680,000 ordinary fully  paid  shares  at  a  subscription  price  of  $1.50  per  share  and  is  being  made  pursuant  to  ASX  Listing  Rule 7.1.  No Catalyst shareholder approval is required for the placement.

Proceeds from the share placement will strengthen the Company’s working capital position and enable it to move forward with its advanced projects at the Four Eagles Gold Project and Tandarra Gold Project and  to  continue  to  pursue  aggressive  exploration  programmes    in  the  Whitelaw  Gold Belt  north  of  Bendigo and adjacent belts north of the Fosterville and Inglewood goldfields.

The  subscription  price  represents  a  discount  of  approximately 11%  to  the  30  day  volume  weighted  average price of the Company’s shares   prior to the date of the subscription agreement.

The placement will be completed within 30 days and as soon as reasonably practicable following receipt of any  required  regulatory  and  statutory  approvals  and  confirmation  of  no  material  adverse  change in respect of Catalyst occurring.  The subscription price may be subject to adjustment if the 30 day volume weighted  average  price  of  the  Company’s  shares  prior  to  the  date  of  completion of the placement, or the  5  day  volume  weighted  average  price  for  the  period  ending  immediately  prior  to  the  date  the  subscription conditions are satisfied, is less than $1.50.

Following the share placement, GEV will hold an equity interest of approximately 11% of Catalyst. The placement  shares  to  be  issued  to  GEV  will  rank  equally  with  all  other  shares  on  issue  in  the  capital  of  the  Company  and  will  be  subject  to  voluntary  escrow  for  a  period  ending  12  months  from  the  date  of  issue.

Within  3  months  following  completion  of  the  share  placement,  Catalyst  intends  to make a  pro-rata option offer to all shareholders.  The option offer is expected to be available to all shareholders with a registered  address  in  Australia  and  New  Zealand  and  other  selected  jurisdictions  for a nominal subscription price with the options being exercisable during a period that is unlikely to exceed 3 years. Full details of the option offer will be provided in the prospectus to accompany the offer.

Stephen  Boston,  Catalyst’s  Chairman,   stated “We  are  delighted  to  welcome  GEV  to  our  shareregister  as  a  major  shareholder.  We  have  been  working  with  GEV  as  a  joint  venture  partner  over  the  last  five  years  and  in  that  time  have  developed  a  very  good  working  relationship  with  them  both  technically  and  corporately.    The  presence  of  two  significant  Australian  mining  companies,  St  Barbara  Limited  and  GEV  on  the  Catalyst  share  register  is  an  endorsement  of  the  potential  of  the  Company  to  discover large high- grade gold deposits in Victoria.”

Source: Company Press Release