Metal Tiger makes investment in Australia's Catalyst Metals

Natural resources investor Metal Tiger has subscribed for 142,857 new shares in Catalyst Metals at a price of AUD 2.10 per share, it announced on Monday, for a total investment of about AUD 0.3m (£0.17m), as part of Catalyst's AUD 18m placement.

The AIM-traded firm said Catalyst was also looking to undertake a share purchase plan to raise an additional AUD 2m from existing shareholders.

Following completion of the fundraise and the share purchase plan, Metal Tiger said it would be interested in 142,857 shares in Catalyst, representing about 0.15% of its issued share capital.

“Catalyst is a mineral exploration company which holds interests in advanced gold projects in Victoria, Australia,” the Metal Tiger board explained.

“The company is planning major exploration programs in the Bendigo district in 2021, comprising circa 80,000 metres of drilling across their high-grade Victorian gold projects.”

That would include 30,000 metres of drilling focused on the Boyd's Dam project, targeting a planned maiden JORC resource in 2021, and 50,000 metres drilling targeted at the Tandarra, Drummartin, Boort, Toolleen and Golden Camel projects, where high-grade gold mineralisation had been discovered.

“Furthermore, Catalyst is seeking to acquire the Henty Gold Mine and associated Tasmanian exploration tenements from Diversified Minerals.”

For the 12 months ended 30 June, Catalyst reported a net loss of about AUD 1.75m, and had net assets of AUD 22.68m.

At 1445 GMT, shares in Metal Tiger were down 1.61% at 23.12p.