Star Minerals Secures $2.75M Asset Sale and $1M Equity Boost from Catalyst Metals
Star Minerals has entered a strategic partnership with Catalyst Metals, securing a gold milling agreement for its Tumblegum South project and selling its West Bryah Basin copper-gold assets for $2.75 million. Catalyst also commits to a $1 million equity placement in Star Minerals, underpinning the company’s development plans.
- Gold toll treatment agreement for 250kt at Catalyst’s Plutonic Mill
- Catalyst Metals to acquire West Bryah Basin copper-gold project for $2.75M
- Catalyst to invest $1M via strategic share placement in Star Minerals
- Agreement includes options and rights of refusal on Tumblegum South assets
- Transaction supports Star Minerals’ flagship project development and cash flow
Strategic Partnership Takes Shape
Star Minerals (ASX – SMS) has formalised a significant collaboration with Catalyst Metals (ASX – CYL), marking a pivotal step in advancing its Tumblegum South Gold Project. The two companies have signed a toll treatment agreement under which Catalyst will process up to 250,000 tonnes of ore from Tumblegum South at its Plutonic Mill over two years, offering commercially competitive rates that are crucial for Star Minerals’ production timeline.
This arrangement not only secures a reliable milling pathway but also aligns the interests of both parties through Catalyst’s strategic equity investment. Catalyst will take a $1 million placement in Star Minerals at $0.062 per share, becoming a substantial shareholder and partner in the project’s journey.
Asset Sale Boosts Capital and Focus
In a complementary move, Catalyst Metals will acquire Star Minerals’ non-core West Bryah Basin copper-gold tenements for a total consideration of $2.75 million, comprising $1 million in cash and shares valued at $1.75 million. This divestment allows Star Minerals to sharpen its focus and capitalise on its flagship gold project while bolstering its balance sheet with fresh capital.
The sale is subject to regulatory and third-party consents, a standard but important step that investors will watch closely. Completion of this transaction will provide Star Minerals with additional financial flexibility as it moves toward production.
Project Outlook and Market Implications
Star Minerals’ Tumblegum South Gold Project is positioned for production in early 2026, with recent approvals and agreements underpinning its development. The updated production target anticipates processing between 167,000 to 255,000 tonnes of ore, yielding up to nearly 16,000 ounces of gold, with robust economics supported by current gold prices well above previous assumptions.
By securing milling capacity and strategic investment from Catalyst Metals, Star Minerals mitigates operational risks and strengthens its capital position. The inclusion of options and rights of refusal in the agreement further cements a collaborative framework that could unlock additional value for both companies.
Managing Director Ashley Jones emphasised the strategic nature of the deal, highlighting the mutual benefits and the potential for ongoing cooperation as the Tumblegum South project advances.
Bottom Line?
This partnership and asset sale mark a decisive step for Star Minerals, but the timing of completion and operational execution will be key to watch.
Questions in the middle?
- When will the toll treatment agreement officially commence following operating procedure finalisation?
- What are the potential impacts on Star Minerals’ cash flow and project timeline post-completion?
- Could Catalyst Metals’ involvement lead to further collaboration or consolidation in the region?
