Catalina Resources will acquire the Badja Gold Project in Western Australia for A$6 million upfront, adding a 90,358-ounce JORC resource and a conceptual exploration target of up to 303,000 ounces. The deal is paired with a A$3.51 million placement to fund drilling, but remains conditional and leaves the company firmly in exploration territory.
- Binding agreement to acquire Badja for A$6 million upfront
- 90,358oz JORC resource plus 109,000-303,000oz conceptual Exploration Target
- Up to 15,000m of RC, diamond and aircore drilling planned
- A$3.51 million placement priced at A$0.055 a share
- Acquisition remains subject to shareholder and third-party approvals
Badja adds 90,358 ounces and a large exploration target
Catalina Resources Limited (ASX:CTN) is buying a Western Australian gold project with an established resource, granted mining tenure and a drilling campaign already being prepared. The Badja Gold Project, about 110 kilometres south-west of Mount Magnet, hosts a JORC 2012 Mineral Resource of 1.11 million tonnes at 2.52 grams per tonne gold for 90,358 ounces.
The headline resource is supported by an additional conceptual Exploration Target of 780,000 to 1.66 million tonnes at 4.4 to 5.7 grams per tonne for 109,000 to 303,000 ounces. That target is not a Mineral Resource or Ore Reserve, and Catalina says it is uncertain whether further exploration will convert it into a compliant resource. Still, it gives the acquisition its central strategic tension: the company is paying for a defined but modest asset while underwriting a much larger geological possibility.
Gnows Nest carries the bulk of the near-term interest, with an Indicated resource of 59,551 ounces at 4.32 g/t. Historical underground mining produced about 27,925 ounces at an average recovered grade of 21.85 g/t, while drilling has returned intercepts including 13 metres at 13.73 g/t and 3 metres at 42.18 g/t. Catalina says mineralisation remains open along strike and at depth, particularly beneath the old workings.
Catalina plans 15,000 metres of resource drilling
The company plans up to 15,000 metres of reverse circulation, diamond and aircore drilling over the next six months, with Gnows Nest the initial priority. Earthworks are expected through November and December, with drilling targeted to begin in January 2027. The program will combine step-out drilling, selected infill holes and diamond drilling intended to improve structural understanding, bulk-density data and future metallurgical work.
That timetable gives Catalina a more substantial exploration platform than its previous cash position suggested. The company ended September with A$1.38 million in cash, a constraint highlighted in its quarterly update, while a pending Nelson Bay River bond release was identified as a possible source of additional funds. The current announcement puts the proposed A$0.83 million release into the post-transaction cash calculation, alongside the placement and director subscriptions, producing pro forma cash of about A$2.46 million after acquisition and transaction costs.
Badja also carries a secondary tungsten angle. Historical drilling at Monte Cristo returned 12 metres at 0.12% WO3, including one metre at 0.64%, while Flying Emu recorded tungsten intersections of up to 0.383% WO3. Catalina has engaged geological consultant Nigel Maund to assess the tungsten potential, although gold remains the stated development priority and no tungsten resource has been defined.
A$3.51 million raise funds the transaction and drilling
The acquisition consideration is split between A$3 million cash and A$3 million in Catalina shares issued at A$0.055 each, subject to shareholder approval. The sellers may receive a further A$3 million in cash or shares if Badja reaches a 160,000-ounce JORC resource milestone or produces 50,000 ounces of gold. The transaction also leaves existing milestone obligations to EMU, including A$2.2 million payable if specified production or disposal conditions are triggered.
Catalina has firm commitments for a A$3.39 million placement at A$0.055 a share, plus A$120,000 of director participation. The issue price represents a 9.1% premium to the company’s 15-trading-day VWAP, but the capital structure will expand materially: the filing shows 369.9 million shares post-placement and acquisition, compared with 246.2 million before the offer. Further shares and options are also proposed for the lead manager and corporate advisers, subject to approval.
Approvals and development hurdles remain
The deal is conditional on shareholder approval for the consideration shares and on required third-party consents, potentially including Ministerial consent under Western Australia’s Mining Act. A mining lease application remains pending and is subject to a Warden’s Court objection. The project also has no Ore Reserve, definitive development study or secured third-party processing agreement.
Catalina points to processing plants within 100 kilometres and says it will evaluate toll treatment, ore-processing arrangements and standalone options. Those are possibilities rather than contracted pathways: capacity, metallurgy, haulage economics and commercial terms remain unresolved. The next meaningful test is therefore not the size of the exploration target, but whether January drilling can add confidence to the resource without consuming the capital raised faster than the asset can advance.
Bottom Line?
Badja gives Catalina a defined gold resource and an immediate drilling catalyst, but the investment case still depends on approvals, funding discipline and converting conceptual upside into compliant resources.
Questions in the middle?
- Will shareholders approve the consideration shares and director participation before the acquisition deadline?
- Can Gnows Nest drilling demonstrate enough continuity and scale to support the 160,000-ounce deferred-payment milestone?
- Will Catalina secure a commercially viable processing pathway before its exploration cash is materially depleted?