Catalyst Metals Secures A$100m Revolving Credit Facility with Top Banks

Catalyst Metals Enhances Financial Flexibility

Catalyst Metals Limited (ASX, CYL) has secured a significant financial backing by signing a three-year, A$100 million revolving credit facility with a syndicate of leading banks including Westpac, National Australia Bank (NAB), and Societe Generale. This facility, while currently undrawn, provides Catalyst with a substantial liquidity buffer, complementing its recent A$150 million institutional placement and robust cash reserves.

Managing Director James Champion de Crespigny highlighted the importance of this milestone, noting the value of establishing strong relationships with tier 1 lenders. The facility not only improves Catalyst’s balance sheet but also signals the company’s creditworthiness and financial discipline, especially given the Plutonic Gold Mine was loss-making prior to Catalyst’s acquisition two years ago.

Strategic Growth at Plutonic Gold Belt

Catalyst’s flagship asset, the Plutonic Gold Belt in Central Western Australia, currently produces approximately 85,000 ounces of gold annually at an all-in sustaining cost of A$2,192 per ounce. The company plans to develop three new mining areas over the next 12 to 18 months, feeding ore into an existing, underutilised processing plant. This strategy aims to establish a five-year mine plan across four mines, leveraging low capital intensity projects totaling around A$31 million.

The revolving credit facility provides Catalyst with additional financial flexibility to support these growth initiatives without immediate reliance on debt. The facility’s terms are favourable, including no mandatory hedging requirements and a three-year tenor, which aligns with the company’s medium-term development horizon.

Broader Implications for Junior Miners

Securing such a facility from prominent banks is a notable endorsement for Catalyst and reflects a broader trend of increased financial support for junior miners demonstrating operational progress and clear growth plans. The involvement of Westpac, NAB, and Societe Generale underscores confidence in Catalyst’s management and asset quality.

With a strong cash position of A$230 million and no current debt, Catalyst is well-positioned to navigate the challenges of gold mining development while maintaining financial discipline. The company also controls over 75 kilometres of strike length near the historic Bendigo goldfield, where high-grade greenfield discoveries hint at further upside potential.