Gold Exploration Victoria (GEV) is investing just over $13 million to acquire around 11 per cent of Perth-based explorer Catalyst Metals.
GEV, which is owned by Gina Rinehart’s company Hancock Prospecting, has an existing relationship with Catalyst as a joint venture (JV) partner on the Four Eagles gold project in Victoria.
Four Eagles is one of five Catalyst projects within the highly prospective Whitelaw gold belt, including the Tandarra, Raydarra, Macorna Bore and Sebastian projects.
GEV spent $4.2 million on exploration at the Four Eagles project in 2015 to earn a 50 per cent share. The company also has the right to earn a larger percentage of the project with continued funding.
In turn, Catalyst formally earned a 51 per cent controlling interest in the Tandarra project from Navarre Minerals in December 2018 by spending $3 million over a four-year period.
GEV’s payment to Catalyst breaks down to $1.50 per share for 8.68 million ordinary shares ($13.02 million), an 11 per cent discount on Catalyst’s 30-day weighted volume average price before the purchase.
Catalyst chairman Stephen Boston said he was delighted with the addition of GEV to company’s share register.
“The presence of two significant Australian mining companies, St Barbara and GEV, on the Catalyst share register is an endorsement of the potential of the company to discover large, high-grade gold deposits in Victoria,” Boston said.