Catalina Redirects $1.29 Million Towards Mid-West Exploration

Nelson Bay River Transfer Frees Restricted Capital

Catalina Resources Limited (ASX:CTN) has turned a non-core Tasmanian asset into a potential funding source, with the executed transfer of the Nelson Bay River Iron Ore Project set to unlock up to $1.29 million in rehabilitation security. The capital is earmarked for exploration in Western Australia rather than further work at the divested project.

Under the agreement with Newcam Minerals, the project is being transferred for nominal cash consideration, while Newcam assumes the rehabilitation, environmental and closure obligations once the transfer and applicable regulatory processes are completed. Catalina said $827,200 is expected to be released before November 2026 after Newcam lodges equivalent security with the Tasmanian Government. A further $466,000 remains tied up in a bank guarantee and would only flow to Catalina when that guarantee is subsequently released.

November Drilling Hinges on Heritage Clearance

The immediate use of the expected release is a planned drilling campaign across Catalina’s Mid-West portfolio. Contractors have been provisionally secured for drilling at Kirkalocka and Tallering, with heritage clearance described as the final outstanding requirement before work can begin in November.

At Kirkalocka, Catalina plans approximately 3,000 metres of maiden reverse-circulation drilling across the Highway, Capra, Avis and Two Mile Bore targets. The project sits adjacent to the Kirkalocka Gold Mine, which the company says hosts an approximately 240,000-ounce gold Mineral Resource and a 2.0 million-tonne-per-year processing plant undergoing refurbishment. That proximity could provide future toll-treatment options, although any development pathway remains dependent on exploration success and commercial assessment.

Kirkalocka Targets Gold While Tallering Tests Tungsten

The Kirkalocka targets carry a mixture of historical drilling and surface evidence rather than a defined new resource. Reported historical results include 1 metre at 23.08 grams per tonne gold from 18 metres, along with narrower lower-grade intersections at Highway and surface sampling of up to 9.89 grams per tonne gold at Avis. Catalina has since completed field reconnaissance, mapping, rock-chip work and a soil program of approximately 1,500 samples to refine the drill targets.

At Tallering, the company will investigate the extent and continuity of a tungsten-polymetallic system identified through historical drilling and more recent fieldwork. Historical drilling returned 17 metres at 0.178% tungsten trioxide from 79 metres, including 4 metres at 0.367%, while recent rock chips returned up to 0.62% tungsten trioxide alongside molybdenum, bismuth, copper, silver and gold. Drilling will also test an untested eastern induced-polarisation conductivity anomaly, but the announcement does not establish whether the mineralisation will form a viable resource.

Capital Redirected, Execution Risk Remains

Executive Director Ross Cotton said the divestment would provide “a clear exit from Tasmania” and direct capital into the company’s Mid-West portfolio. The practical milestones now sit outside the transaction headline: completion of the remaining regulatory processes, confirmation of the $827,200 security release, heritage clearance and the start of drilling. Results from those programs are expected from late 2026, leaving Catalina’s near-term value proposition tied to converting targets into credible exploration outcomes.