Street Talk. Jim Rice
Stockbroker Shaw and Partners was rounding up cornerstone investors from overseas on Tuesday morning, and was expected to push out the term sheets later in the day, according to fund managers.
While the exact deal size was yet to be decided, the pricing had been fixed at 40¢ a share, an 11.1 per cent discount to the last close.
Black Cat should get plenty of attention from investors. It made a big bet last year, tapping equity markets to help pay for a $44.5 million acquisition of two gold projects, Coyote and Paulsens, from bigger player Northern Star. The M&A is showing early signs of promise for its investors.
Coyote’s total resource swelled from 488 kilo ounces at 5.1 grams per tonne of gold to 32 per cent higher at 645 kilo ounces at 5.5 grams per tonne, in drilling results posted on Monday. Black Cat’s other M&A bet, Paulsens, has drilling results due before January end.
The two assets also came with processing facilities of their own, including a 300 kilo tonnes per annum (ktpa) plant for Coyote and a 450 ktpa facility for Paulsens.
Black Cat had a $98 million market capitalisation before the raise. Its shares were expected to strat trading again on Thursday.
