Catalyst Metals shares drop after discounted placement
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More news: Catalyst Metals shares tumbled after the gold miner announced a $150 million raise through a discounted placement with institutional investors.
Catalyst’s share price fell 3.77% to $6.39 at 11:38am AEST, compared to the wider materials sector which was down 0.24%.
Catalyst Metals raises $150m in discounted institutional placement
The news: Gold miner Catalyst Metals has raised $150 million through a placement with institutional investors to further develop the Plutonic Gold Belt in Western Australia, undertake regional exploration and provide capital flexibility.
The numbers: Catalyst issued 25 million additional shares at an issue price of $6, a 9.6% discount on the last traded price of $6.64 on Tuesday and a 7.2% discount on its 10-day volume-weighted average price of $6.46.
The context: The funding will underwrite Plutonic Gold Belt development and support the drill out of multiple deposits to help increase mine life, according to the company.
Catalyst metals consolidated the mining leases in the Plutonic Gold Belt after acquiring Vango Mining and merging with Superior Gold in 2023.
Trading in Catalyst shares was halted before markets opened on Wednesday, pending this announcement. Allotment, quotation, and trading of new shares under the placement will begin on 29 May after they are settled the day before.
What they said: "With almost $250 million in cash, Catalyst is well funded to grow production at Plutonic, continue to explore the belt and pursue the growth initiatives," Catalyst managing director and CEO James Champion de Crespigny said.
The source: ASX
