Black Cat Syndicate has settled the final cash payment for its acquisition of the Lakewood processing facility, using operating cash flow to maintain a debt-free status.
The $85 million deal, struck with Westgold in March this year, comprised of $15 million worth of Black Cat shares and $70 million in staged cash payments. The second and final staged payment for $25 million was made, as scheduled, on November 30.
It represents the final financial obligation for Black Cat under the acquisition deal.
The Lakewood facility was acquired by Karora Resources for $80 million in 2022, just prior to its $1.2 billion merger with Westgold.
Lakewood has now been incorporated into Black Cat’s Kal East gold operation in Western Australia. The company describes it as a “transformational, strategic” acquisition that has delivered key processing infrastructure. This has included grid power, sealed roads, water supply, and a newly-commissioned tailings facility.
This is in addition to the 1.2 million tonnes per year of processing capacity.
An engineering study is underway to potentially expand that capacity to 1.5 million tonnes per year.
Black Cat managing director Gareth Solly said the final payment leaves the company well placed for further investment across the operation.
“Lakewood is the heart of Kal East and this infrastructure is driving strong increases in gold production and cash generation,” he said. “The final payment for Lakewood has been made from our operating cashflow, and we remain debt free and unhedged with ongoing production growth.”
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