Catalpa Resources yesterday announced it would advance its $92 million Edna May open-pit gold project into production by July next year, after raising more than $106 million in debt and equity.
As part of the Edna May finance facility, the company has sold forward 352,316 ounces of gold at the price of $1557 per ounce.
The company said it has ambitions of becoming Australia’s next mid-tier gold producer.
Catalpa and its largest shareholder, Lion Selection, signed a merger implementation agreement in June this year, bringing Edna May and Newcrest’s Cracow Gold Operations in Queensland together under Catalpa’s management.
Lion holds a 30% stake in the 100,000 ounces per annum Cracow operations.
As part of the merger, Catalpa will also acquire a pre-emptive right over Newcrest’s remaining 70% stake.
The merger is expected to be implemented in October this year.
According to Catalpa, the agreement will allow it to produce more than 130,000 ounces of gold per annum from mid-2010, when Edna May comes online.