Catalyst Metals’ Henty Exit Raises Questions on Future Victorian Growth
Catalyst Metals has finalized the sale of its Henty gold mine to Kaiser Reef, securing $15 million in cash and a near 20% stake in Kaiser. This deal unlocks a strategic option to acquire half of the Maldon processing plant, bolstering Catalyst’s Victorian gold ambitions.
- Henty gold mine sold to Kaiser Reef for $15 million cash
- Catalyst gains 19.99% equity interest in Kaiser Reef
- Option secured to acquire 50% of Maldon processing plant in Victoria
- Supports development of Four Eagles gold project
- Catalyst controls significant gold resources in Western Australia and Victoria
Strategic Disposal and New Partnerships
Catalyst Metals Limited (ASX: CYL) has officially completed the sale of its Henty gold mine in Tasmania to Kaiser Reef Limited (ASX: KAU), a transaction first announced in March 2025. The upfront cash consideration of $15 million has been received, alongside a 19.99% equity stake in Kaiser Reef, positioning Catalyst as a significant shareholder in the acquiring company.
This disposal marks a pivotal moment for Catalyst, freeing up capital and resources to focus on its core growth projects, particularly in Victoria. The deal also includes an option for Catalyst to acquire a 50% interest in the fully permitted and operational Maldon processing plant, which has a throughput capacity of 200,000 tonnes per annum. This facility is expected to play a central role in processing ore from Catalyst’s Four Eagles gold project.
Unlocking Value in Victoria
The Four Eagles project, located in Victoria, is gaining momentum with this strategic partnership. The option to acquire half of the Maldon plant provides Catalyst with a low-capital pathway to process ore from multiple nearby deposits, enhancing operational flexibility and cost efficiency. This aligns with Catalyst’s broader strategy of leveraging existing infrastructure to develop multiple projects with relatively low capital intensity, estimated at around A$31 million across three projects in the Plutonic Gold Belt.
In addition, Catalyst’s control of over 75 kilometres of strike length north of the historic Bendigo goldfield, which boasts a rich history of gold production exceeding 22 million ounces, adds further upside potential. Recent drilling has delineated a high-grade greenfield resource at 26 grams per tonne gold, suggesting that further discoveries could extend the company’s resource base.
Broader Portfolio and Financial Position
Beyond Victoria, Catalyst’s flagship asset remains the Plutonic Gold Belt in Central Western Australia, home to the Plutonic Gold Mine producing approximately 85,000 ounces annually at an all-in sustaining cost of around A$2,400 per ounce. Catalyst plans to develop three projects in this belt over the next 12 to 18 months, all feeding into a centrally located, underutilised processing plant.
With no debt on its balance sheet and cash and bullion holdings of approximately A$98 million, Catalyst is well-positioned financially to advance its development plans. The company’s resource base includes a measured and indicated resource of 3.4 million ounces at 2.9 grams per tonne gold and an ore reserve of 1.0 million ounces at 3.0 grams per tonne.
Overall, the completion of the Henty disposal and the acquisition of a strategic stake in Kaiser Reef, combined with the option on the Maldon plant, represent a clear step forward in Catalyst’s strategy to unlock value and expand its footprint in the Victorian goldfields while maintaining a strong presence in Western Australia.
Bottom Line?
Catalyst’s reshaped portfolio and new processing options set the stage for accelerated growth in Victoria’s gold sector.
Questions in the middle?
- What are the detailed terms and timeline for exercising the option on the Maldon processing plant?
- How will Catalyst’s 19.99% stake in Kaiser Reef influence its strategic decisions or financial results?
- What are the next exploration and development milestones for the Four Eagles project?
