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.
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