Catalyst Metals Ltd (ASX:CYL) has successfully repaid the first tranche of a convertible note, amounting to $9.075 million, which keeps it on track to integrate and streamline operations within the Plutonic Gold Belt.
The repayment was financed through a revolving working capital gold loan from Auramet International Inc.
In March 2023, Catalyst acquired Vango Mining Ltd, along with a $12.1 million convertible note owed to the Collins St Value Fund.
The note is set to mature in two tranches and the first tranche has now been repaid – the remaining $3.025 million is due in June.
Optimised asset base
This financial manoeuvre is part of Catalyst’s broader effort to consolidate its position in the Plutonic Belt, following its acquisition of Superior Gold Inc and Vango.
The company faced several challenges post-acquisition, including operational inefficiencies, legal disputes and a complex capital structure.
Repaying the first tranche of the convertible note marks a crucial step in Catalyst’s plan to resolve these issues and optimise its asset base.
Catalyst’s working capital gold loan facility, capped at $8 million or 2,680 ounces of gold, offers flexible financial support, allowing repayments and redraws up to the maximum limit without penalties until its maturity on June 15 this year.
This strategic financial planning underscores Catalyst’s approach to overcoming inherited challenges and advancing its consolidation efforts in the Plutonic Gold Belt.
About Catalyst Metals
Catalyst Metals has a strong presence in the gold mining sector with control over three promising gold belts.
The company's holdings include the 40-kilometre Plutonic Gold Belt in Western Australia, home to the Plutonic gold mine and nearby high-grade, underexplored resources.
In Tasmania, Catalyst owns and operates the high-grade Henty Gold Mine, within the 25-kilometre Henty gold belt, boasting a production history of 1.4 million ounces of gold at an average grade of 8.9 grams per tonne.
Catalyst also oversees more than 75 kilometres of strike length adjacent to the over 22 million ounces Bendigo goldfields in Victoria.
This area is particularly noted for its high-grade, greenfield resources at the Four Eagles project, reinforcing Catalyst Metals' position as a leader in the gold mining industry.