Black Cat Syndicate (ASX:BC8) received commitments for AU$65 million via a two-tranche placement to institutional and sophisticated investors of 85.5 million fully-paid ordinary shares at AU$0.76 per share, according to a Friday Australian bourse filing.
The proceeds from the placement, after costs, will allow the firm to speed up mine development at the Kal East gold project in Western Australia. Mining production will be increased and optimized to 1.2 million tonnes per annum throughput rates from 800,000 tonnes per annum.
The funding will also allow the company to accelerate metallurgical/engineering studies of potential processing pathways for the high-grade Mt. Clement antimony project, also in Western Australia. The remaining funds will be used for working capital and de-risking its balance sheet.
The company's shares fell 6% in recent Friday trade.
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