SYDNEY, AUSTRALIA: Catalyst Metals Limited (ASX: CYL) entered right into a Bid Implementation Agreement to supply a bid to acquire Vango Mining Limited (ASX:VAN).
The offer is constant with Catalyst Metal’s technique to management high-grade gold belts in Australia, with Vango’s extremely potential Marymia Gold Project having +40 kilometres of under-explored strike alongside the world-class Marymia-Plutonic gold belt in Western Australia.
In addition, the Offer, if successful, will allow Catalyst to use its significant exploration expertise, collectively with its operational learnings from its high-grade Henty Gold Mine in Tasmania to an aggressive exploration program throughout Vango’s extremely potential and strategic tenement package.
Vango Mining’s tenements host an existing Resource of 1Moz at 3.3 g/t and can be found instantly adjoining to the Plutonic gold mine, which is an working mine with a Resource of 6Moz, Reserve of 600koz and 3Mtpa CIL processing plant.
Catalyst Managing Director & CEO James Champion de Crespigny said: “This transaction is important for Catalyst and Vango shareholders. It turns a brand new leaf for the way forward for each companies.
The mixed group will have the monetary strength and technical experience to unlock the worth of the potential Marymia tenements. There is immense potential to create significant worth for all shareholders by driving an aggressive exploration technique on what has already confirmed to be a +15Moz Australian gold belt”.
Vango Executive Chairman Bruce McInnes said: “Bringing collectively Marymia’s huge exploration upside and the funding and technical knowledge of Catalyst makes enormous sense for all shareholders. It is the ideal recipe to create worth for all Vango shareholders and therefore the Board helps the bid unanimously”.
The Offer provides Vango shareholders with an alternative to become shareholders in a gold mining firm with scale, manufacturing diversification and complementary excessive grade gold portfolios throughout three significant gold belts in Australia. Vango shareholders will additionally become shareholders in a financially stronger company, with enhanced buying and selling liquidity and funding appeal.
Under the offer, Vango shareholders will be entitled to obtain 5 fully paid ordinary shares in Catalyst Metals for each 115 Vango shares held.
Based on Catalyst’s final closing price on 6 January 2023 of $1.205, the implied worth of the Offer Consideration is roughly $66.0 million or $0.052 per Vango Share.
On profitable completion of the Offer, Vango shareholders will personal roughly 35.7% of the enlarged Catalyst.