Kaiser Reef Raises A$30M, Acquires Henty Gold Mine with 25koz Annual Output

Transformational Acquisition of Henty Gold Mine

Kaiser Reef Limited (ASX: KAU) has taken a decisive step to expand its gold mining footprint with the announcement of a definitive agreement to acquire the Henty Gold Mine and associated exploration tenements from Catalyst Metals Limited (ASX: CYL). Expected to complete by mid-May 2025, this acquisition adds a complementary operational asset producing approximately 25,000 ounces of gold annually, significantly enhancing Kaiser's production profile.

The Henty Gold Mine boasts a JORC-compliant Mineral Resource of 4.1 million tonnes at 3.4 grams per tonne gold, equating to 449,000 ounces of contained gold, alongside an Ore Reserve of 1.2 million tonnes at 4.0 grams per tonne for 154,000 ounces. This resource base underpins a mine life of at least five years, with considerable exploration upside.

Robust Capital Raising and Funding

To support the acquisition and ongoing growth, Kaiser successfully secured binding commitments for a A$30 million two-tranche placement. The first tranche, raising A$9.1 million, has been completed, while the second tranche of A$20.9 million awaits shareholder approval at a general meeting scheduled for 7 May 2025. Kaiser’s directors have also committed to subscribing for A$0.7 million, subject to approval.

Complementing the equity raise, Kaiser secured a A$10 million funding package from Auramet International Inc, comprising an A$8 million senior secured gold loan and a A$2 million unsecured gold prepayment facility. These financial arrangements position Kaiser with a strong working capital base, reflected in a closing cash balance of A$10.9 million as of 31 March 2025.

Operational Progress and Strategic Partnerships

Operationally, Kaiser continues to advance its existing assets. At the A1 Gold Mine, development has progressed to the Nova Zone, with diamond drilling confirming high-grade mineralisation at depth. The company has shifted focus from capital and waste development to ore development, anticipating increased production in the June quarter.

Meanwhile, the Maldon Gold Processing Plant has ramped up toll treatment operations, processing ore from multiple third-party sources, which now accounts for nearly a quarter of gold recovered. Infrastructure upgrades include the completion of a tailings storage facility lift, expanding capacity by 220,000 tonnes, and rehabilitation of mill foundations to ensure long-term operational integrity.

Kaiser and Catalyst Metals have also agreed on an option to form a 50/50 joint venture at the Maldon processing plant, with Catalyst funding potential plant expansions. This partnership could unlock significant economies of scale and provide a clear pathway to process Victorian gold assets.

Looking Ahead

Managing Director Jonathan Downes highlighted the transformative nature of the Henty acquisition, emphasizing the combined portfolio of three gold projects, two operational mines, and two processing plants. With profitable production exceeding 30,000 ounces per annum and strong exploration potential, Kaiser is well-positioned to capitalize on a favourable gold market environment.

As the company integrates the Henty asset and advances its Victorian projects, investors will be watching closely for operational milestones and the outcome of the upcoming shareholder meeting. The strategic moves made this quarter mark a pivotal moment in Kaiser Reef’s growth trajectory.