Black Cat Syndicate Ltd. has made the final payment for its acquisition of the Lakewood processing facility, funded out of operating cashflow.
Black Cat struck an AU$85 million deal to acquire the processing facility from Westgold Resources in March. The deal comprised of AU$70 million in staged cash payments and AU$15 million Black Cat shares.
The company made the final payment of AU$25 million in cash on November 30.
The payment satisfies all outstanding financial obligations under the Lakewood acquisition.
Black Cat said the Lakewood acquisition was “transformational, strategic”, and delivers key processing infrastructure for the company. Lakewood provides existing infrastructure, including grid power, sealed roads, water and a tailings storage facility.
An engineering study is currently underway for the expansion of the processing facility to 1.5 million tonnes per year.
Black Cat’s Managing Director, Gareth Solly, said: “Lakewood is the heart of Kal East and this infrastructure is driving strong increases in gold production and cash generation.
“The final payment for Lakewood has been made from our operating cashflow, and we remain debt free and unhedged with ongoing production growth.”
