Black Cat Syndicate Advances Paulsens Restart with $80M Capital Boost
Black Cat Syndicate has completed refurbishment and commenced commissioning at its Paulsens Gold Operation, supported by a successful $80 million capital raising that strengthens its balance sheet and growth prospects.
- Paulsens processing facility refurbishment completed on time and budget
- First gravity gold poured in December 2024, commissioning ongoing
- Kal East open pit mining ahead of schedule with strong ore production
- $80 million placement completed, enabling debt-free restart
- Big Sarah tenement granted, drilling planned on high-grade targets
Operational Milestones at Paulsens
Black Cat Syndicate Limited (ASX: BC8) reported significant progress in the December 2024 quarter, highlighted by the completion of refurbishment works at its flagship Paulsens Gold Operation. The company successfully completed the upgrade of the 450ktpa processing facility on schedule and within budget, a critical step in its strategy to restart production.
Commissioning of the processing plant began in mid-December 2024, rapidly advancing to the first gravity gold pour on 22 December. This milestone marks the transition from refurbishment to active production, with commissioning expected to continue through February 2025 using low-grade stockpiles. Selective and mechanised mining activities also progressed, including 764 metres of mineralised drive development, mostly outside the current resource, indicating promising long-term upside potential.
Strong Performance at Kal East and Exploration Upside
The Kal East Gold Project continued to deliver, with open pit mining at the Myhree deposit running ahead of schedule. The quarter saw 134,000 tonnes of ore mined, containing approximately 10,441 ounces of gold, hauled to the Paddington processing facility. Sales of ore to Paddington maintained a high metallurgical recovery rate of 91%, underscoring operational efficiency.
Exploration efforts expanded with the granting of the Big Sarah tenement, adding 1,522 square kilometres of highly prospective ground. Big Sarah, historically mined for high-grade gold but never drilled, is set for drilling campaigns shortly. Additionally, Black Cat secured up to $216,000 in co-funding from the Department of Energy, Mines, Industry Regulation and Safety for drilling the Paulsens West seismic target, further supporting exploration momentum.
Financial Strength and Corporate Developments
Financially, Black Cat bolstered its position by completing an $80 million two-tranche placement at $0.52 per share, raising funds to support the Paulsens restart without incurring debt. This strategic capital raising allowed the company to repay $9 million in convertible notes early, reducing financial risk and avoiding hedging commitments. As of 31 December 2024, Black Cat held approximately $57 million in cash, positioning it well for ongoing development and exploration activities.
The company also welcomed two new independent non-executive directors, Davide Bosio and Richard Laufmann, bringing expertise in capital management and the resources sector to guide Black Cat through its growth phase. Shareholders overwhelmingly supported all resolutions at the 2024 annual general meeting and a subsequent general meeting related to the capital raising.
Looking Ahead
Black Cat plans to continue drilling near-mine targets at Paulsens and Kal East through early 2025, alongside advancing metallurgical studies at the Mt Clement antimony project. The company aims to accelerate throughput and expand mining operations to achieve production targets exceeding 200,000 ounces per annum across its portfolio.
With a robust cash position, operational milestones achieved, and a clear growth strategy, Black Cat Syndicate is well-positioned to transition from development to a multi-operation gold producer in the near term.
Bottom Line?
Black Cat’s successful restart of Paulsens and strong capital position set the stage for accelerated growth and production ramp-up in 2025.
Questions in the middle?
- How will upcoming drilling results at Big Sarah and Paulsens West impact resource estimates?
- What are the timelines and capital requirements for expanding Kal East’s processing facility?
- How will gold price fluctuations influence Black Cat’s operating cash flow and project economics?
