Gold Exploration Victoria, owned by Gina Rinehart’s Hancock Prospecting, is set to become Catalyst Metals’ largest shareholder after investing $7.875 million in the company.
The placement involves 3.5 million shares at $2.25 per share and does not require shareholder approval.
Once completed, the placement will give Gold Exploration a 14.8 per cent stake in Catalyst.
Gold Exploration’s investment will strengthen Catalyst’s working capital position, with proceeds from the share placement enabling advancements at Four Eagles gold project, Tandarra and Whitelaw Gold Belt.
The placement will be completed within five business days, yet its subscription price isn’t final.
Being susceptible to adjustment, the 30-day volume weighted average price of the company’s shares and the five day for the period ending, is dependent on it being less than $2.25.
For so long as Gold Exploration holds a 15 per cent interest in Catalyst shares, it will have the right to nominate a representative to the Board of the Company.
Catalyst chairman Stephen Boston said, “This additional investment by GEV into our company further cements the strong working relationship that has been built between both companies technically and corporately over the past five years.
“Catalyst finds itself in a very strong financial position as it embarks upon its biggest exploration programme in 2020.”