Catalyst Metals Targets 200koz Gold Milestone Following $150M Placement

About Catalyst Metals Ltd

Catalyst Metals Limited (ASX: CYL) is an Australian gold exploration and development company headquartered in Perth. Established in 2006, Catalyst focuses on discovering and developing high-quality gold deposits.

The company’s portfolio includes several key projects, such as the consolidated Plutonic Gold Belt in Western Australia, which is known for its significant gold production potential, and the Bendigo Gold Project in Victoria which lies directly north of the Bendigo Goldfields where over 22Moz of gold has been produced historically.

They reported Group Ore Reserves at 10.6Mt at a grade of 3.0 grams per tonne (g/t) for 1.02Moz of gold, and Total Mineral Resource at 36.4Mt at a grade of 2.9g/t for 3.41Moz. Catalyst is now also a 19.99% shareholder in Kaiser Reef Ltd (ASX: KAU) after the sale of the Henty Gold Mine.

Equity Raising

The company successfully raised A$150M through a placement to sophisticated and professional investors at an issue price of (A)$6.00 per share for 252M shares. The offer price represents a 9.6% discount to the last closing price of $6.64 per share on the 20th of May 2025, an 11.2% discount to the 5-day VWAP of $6.76 per share and a 7.2% discount to the 10-day VWAP of $6.46 per share.

This capital will support the company’s organic growth plans, strengthen its balance sheet, and provide flexibility for future growth initiatives.

Proforma Cash & Bullion is reported at $230M providing de-risking for the Plutonic Belt’s organic growth plans. The $230M consist of existing Cash, $15M upfront consideration from the sale of Henty minus the cash consideration for the acquisition of Old Highway of $33M, and the $150M from the institutional placement.

A breakdown of the use of funds indicated $40M was for Plutonic development projects & capital expenditures, another $40M for near-mine exploration activities, $15M for regional exploration activities, $55M for capital flexibility to pursue growth initiatives, and $80M for Plutonic working capital, corporate & offer costs.

The placement was strongly supported by existing institutional shareholders and new, high quality Australian and international investors, with Argonaut Securities Pty Ltd and Canaccord Genuity Ltd acting as Joint Lead Managers and Joint Bookrunners to the placement.

Plutonic Gold Belt Consolidation & New Acquisitions

Over the past two years, Catalyst has consolidated multiple new deposits under one processing facility, enhancing production efficiency and reducing costs. The flagship asset, the Plutonic Belt, is poised for long-term growth with several underexplored deposits now integrated.

The deposits as the Plutonic Belt have not been explored for +20 years, which offers significant exploration upside, through the drilling of down dip extensions to their known resources. There is +$500M in historically sunk infrastructure and latent processing capacity reduces capital requirements.

The Plutonic Belt has seen a 45% increase in operations and gold production, transforming from a loss-making entity to a profitable venture. The company plans to further increase production organically while lowering long-term costs. The Belt is positioned to become a long-term, sustainable 200koz per annum gold producer at around $2,000/oz All-In Sustaining Cost (AISC) over the next three years into FY27.

Catalyst has acquired the Old Highway Gold Project, a development-ready site expected to produce 35koz of gold annually. This acquisition complements the company’s strategy to leverage existing infrastructure and expand its resource base.

The Old Highway Gold Project is located approximately 40km from Catalyst’s Plutonic processing plant. The project was extensively drilled and studied by Sandfire Resources in the early 2020s, and its proximity to existing facilities will enable Catalyst to optimise production and reduce operational costs.

This acquisition follows those of Vango Mining in 2023 for $66M and Superior Gold also in 2023 for $60M to consolidate the Plutonic Belt.

With the new additions to their portfolio, Catalyst has guidance for Group Production at around 100koz per annum for FY25 at an AISC of $2,303/oz at a grade of 2.8g/t for 0.9Moz, and Group Resources of 3.2Moz at 2.9g/t.

Exploration and Development

Catalyst is focused on fast-tracking lower-risk exploration activities, with extensive drilling programs planned to explore down-dip extensions of known reserves. The company aims to unlock significant value through these initiatives.

As of March 2025, they have 12 drill rigs with plans to fund 320km of exploration. They also completed the Plutonic Camp expansion with an increase in personnel capacity from 520 to 750 with no further expansion required.

At Plutonic East, they are undertaking 25km of drilling converting inferred Resources to indicated, delineating new Resources and testing extensions. They reported various drilling results, at Plutonic East Underground they reported 5m at 9.5g/t, 5m at 2.8g/t, 6m at 4.0g/t, 6m at 2.5g/t and 7m at 6.2g/t. At the Perch Open Pit they reported results ranging from 3m at 11.8g/t to 15m at 2.1g/t.

At K2 they conducted 10km of control drilling and resource definition drilling with results ranging from 0.8m at 53.4g/t to 9.4m at 3.2g/t, with the highest grade at 4.6m at 66.7g/t.

At Trident 55km of drilling was down to convert inferred Resource into indicated, delineating new Resources and testing outside the Resource, their results ranged from 4.6m at 9.4g/t to 13m at 4.5g/t, and 1.7m at 1.2g/t outside the resource.

At Old Highway they conducted 42km of drill program testing, with Zone 400 mine life extensions and underground potential of Zone 250, which contain 0.3Mt of ore at 2.8g/t for 13koz and 1Mt at 1.6g/t for 53koz of gold respectively. Old Highway drill results range from 4m at 4.0g/t to 11m at 8.4g/t in one zone and 5m at 3.5g/t to 18m at 4.6g/t at another.

Leadership and Vision

Catalyst’s experienced management team, led by Managing Director & CEO James Champion de Crespigny, has demonstrated a strong track record in operations, mine development, exploration, and mergers & acquisitions. The company’s vision to become a leading gold producer is supported by its strategic acquisitions and robust operational framework.

With a stable foundation and substantial funding, Catalyst Metals is well-positioned to achieve its ambitious growth targets. The company’s proactive approach to exploration and development, combined with its strategic acquisitions, sets the stage for a promising future in the gold mining industry.