Catalyst Metals (ASX:CYL) plans to sell its Henty Gold Mine in Tasmania to Kaiser Reef (ASX:KAU) to refocus its efforts on its Plutonic gold mine and Bendigo goldfields in Western Australia, according to a Monday filing with the Australian bourse.
The agreement includes an upfront cash payment of AU$15 million, a AU$4 million reimbursement for environmental bond payments, and AU$14 million in deferred gold consideration based on 3,000 ounces of future gold production at the mine, the filing said.
Additionally, Catalyst will receive AU$14 million through a 19.99% equity stake in Kaiser Reef, a 0.5% net smelter return royalty on gold produced, and a 12-year option to acquire a 50% stake in Kaiser's Maldon Processing Facility in Victoria, the filing added.
The deal hinges on ASX confirmation regarding shareholder approval rules, Kaiser shareholder approval, no material adverse change at Henty, and Kaiser raising AU$20 million, the company said.
Kaiser Reef's shares fell almost 3% in recent Monday trade.
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