Catalyst Metals may acquire Unity Metals’ Kangaroo Flat gold plant and Bendigo assets.
The two have signed an option agreement that gives Catalyst a year to acquire the Kangaroo Flat gold plant, equipment, and facilities from Unity.
Catalyst has the right to acquire the 600 000 tonne per annum gold plant at a cost of approximately $65 million, which will accelerate production at the miner’s Four Eagles Gold project, north of Bendigo.
Bruce Kay, Catalyst’s technical director, explained that "this agreement provides Catalyst with a unique opportunity to achieve early gold production from any resource defined at the Four Eagles project….without the high capital cost and delays in building a new plant".
The agreement will see Unity own between 15% and 25% of Catalyst.