Catalina unlocks faster Badja drilling with A$2 million equity deal

A$2 million agreement shifts part of Badja drilling into equity

Catalina Resources Limited (ASX:CTN) has found a way to accelerate its new gold project without funding every drilling metre in cash. Under a binding agreement with Western Australian contractor Topdrill, up to 50% of eligible GST-exclusive metre and active-rate charges can be settled in Catalina shares, capped at A$2 million.

The arrangement could support at least A$4 million of eligible drilling activity where the equity mechanism applies, although it is not an upfront investment by Topdrill and does not require Catalina to spend the full amount. Fuel, consumables, accommodation, inactive rates and GST remain cash costs. Shares will generally be issued at the 20-trading-day volume-weighted average price before the relevant invoice date, subject to Catalina having sufficient ASX Listing Rule 7.1 capacity. If it does not, the invoice must be paid entirely in cash.

Badja drilling targets a 90,358-ounce resource

The funding structure arrives days after Catalina outlined its acquisition of Badja, a project that carries a combined Indicated and Inferred JORC 2012 Mineral Resource of 1.11 million tonnes at 2.52 grams per tonne for 90,358 ounces of gold. The project was previously paired with a planned 15,000-metre campaign and a A$3.51 million placement in Catalina's Badja project acquisition announcement.

“Badja Gold Project tenements, Mineral Resource deposits, prospects and historical drilling.”

“Water Tank plan view showing significant historical drill intercepts.”

Caption and image © Catalina Resources Ltd. From “$2M Drill-For-Equity Agreement & Appointment of MD”, 12 Nov 2026.

More than 15,000 metres of drilling is planned over the next six months, beginning in January 2027, with the wider agreement capable of supporting up to 40,000 to 50,000 metres of reverse-circulation drilling. Gnows Nest is first in line, with Catalina targeting high-grade mineralisation that remains open along strike and at depth, including beneath historical underground workings. Monte Cristo, Flying Emu, Water Tank and other prospects will also be assessed.

Exploration Target offers scale but not a resource

“Monte Cristo plan view showing significant historical gold and tungsten drill intercepts.”

The most ambitious growth case sits in a conceptual Exploration Target covering Gnows Nest and Monte Cristo. Catalina puts the target at 0.780 million to 1.662 million tonnes grading 4.4 to 5.7 grams per tonne for 109,000 to 303,000 ounces of contained gold, additional to the existing resource.

That figure is a geological target, not a Mineral Resource or Ore Reserve. The company says there has been insufficient exploration to estimate a resource and that further drilling may not produce one. The distinction matters: the January program is intended to test the target and improve geological definition, but the headline ounce potential remains uncertain until supported by resource estimation.

Jade Smith takes charge as Catalina pursues development

Jade Smith has moved from executive director of operations and chief operating officer to managing director, effective 12 November. His immediate brief is to integrate Badja into Catalina's Mid-West portfolio, grow the gold resource and advance the project towards a scoping study and then a pre-feasibility study.

Smith's proposed remuneration includes a base salary of $300,000 plus superannuation and 15 million performance rights, subject to shareholder approval. The milestones cover a resource of at least 150,000 ounces, positive scoping and pre-feasibility studies with a stated 20% internal rate of return threshold, and cumulative production of at least 5,000 gold-equivalent ounces. The announcement contains an apparent drafting inconsistency: one section refers to four tranches of 3.5 million rights, while the milestone table specifies four tranches of 3.75 million, which totals the stated 15 million.

The immediate test is execution rather than ambition. Investors will have to weigh the potential for a larger Badja resource against the cash still required for drilling, the shares issued to Topdrill and the uncertainty attached to the Exploration Target. January mobilisation, completed metres, assay results and shareholder approval for the performance rights will provide the first hard checks on Catalina's new development narrative.