Black Cat Syndicate has obtained the necessary funding to refurbish the processing facility and restart mining at the Paulsens gold mine in Western Australia.

The company secured firm commitments for a $36m (A$54.27m) placement from institutional and sophisticated investors, priced at $0.27 per share.

Black Cat noted that the placement was backed by existing shareholders and new institutional investors from North America and Australia.

This placement will be executed in two tranches, with the first tranche involving the issuance of 75.7 million new shares to raise $20.4m by 13 June 2024.

The second tranche will see the issuance of 57.6 million new shares, raising an additional $15.6m, contingent on shareholder approval.

Furthermore, directors of Black Cat will contribute to the investment, adding $3.8m on the same terms as the placement.

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This placement was expanded to incorporate additional equity funding, which also facilitated the termination of the A$6m Sundy convertible note without incurring costs.

The funds raised will enable Black Cat to fully implement its high-grade stockpile strategy, commence early mobilisation of a twin boom jumbo for rehabilitation activities in July and order new front line mobile equipment.

This infusion will also advance mining approvals for additional open-pit resources at Kal East.

Additionally, the investment will support the upgrade of the Coyote May 2024 scoping study to a prefeasibility study and further the advancement of studies for the Mt Clement antimony deposit.

Black Cat managing director Gareth Solly said: “We have now secured immediate funding to commence the major refurbishment works and the high-grade stockpile strategy at Paulsens.

“Planning for mobilisation of MACA Interquip and Cream Mining has commenced, with first gold expected to be processed in 2024.

“We welcome a range of new institutional investors to the register. I would also like to thank our loyal existing shareholders for their ongoing support. We are looking forward to becoming Australia’s next gold producer.”