Black Cat Syndicate snaps up two gold projects from Silver Lake Resources
In consideration for Silver Lake’s gold projects, Black Cat Syndicate will issue more than 8.4 million shares and pay a $50,000 non-refundable deposit.
Black Cat Syndicate (ASX: BC8) emerged from a trading halt today with news it was expanding its portfolio with the acquisition of two gold projects from Silver Lake Resources (ASX: SLR).
Under the deal, Black Cat will acquire the Fingals gold project, which is 30km south-east of its existing flagship Bulong gold asset.
Black Cat will also take over the Rowe’s Find gold project about 110km east of Bulong and surrounded by its EL28/2809 tenement.
Once the project acquisitions have been completed, Black Cat expects its landholding will increase from 168 square kilometres to 233sq km.
Additionally, Fingals and Rowe’s Find will add to Black Cat’s global resources with the projects possessing a combined estimate of 5.2 million tonnes at 2.5 grams per tonne gold for 425,000 ounces.
This is expected to bring Black Cat’s global resources to 8.7Mt at 2.6g/t gold for 719,000oz.
Black Cat also noted that all resources were held on granted mining leases and were in proximity to Bulong.
Consideration and rationale
In consideration for the assets, Black Cat will pay Silver Lake a $50,000 non-refundable deposit. It will also issue more than 8.4 million shares to Silver Lake, making Silver Lake a substantial shareholder.
“Black Cat is growing and transitioning to production by a combination of successful exploration and acquisition,” Black Cat managing director Gareth Solly said.
“Fingals and Rowe’s Find have clear synergies to our Bulong gold project.”
Mr Solly added the two projects comprise 44 tenements, with 28 of those being granted mining leases and posing minimal barriers to mining.
As well as boosting Black Cat’s global resources, the new assets offer up more high-quality exploration targets and near-term mining opportunities.
“All of this without significantly impacting Black Cat’s cash position,” Mr Solly noted.
He said the company would now complete due diligence on the assets and assess the exploration and mining opportunities.
“We also look forward to welcoming Silver Lake as a substantial shareholder upon completion of the acquisition.”