Catalina Resources has agreed to divest its Nelson Bay River project as part of its ongoing portfolio optimisation strategy and secured additional capital through a share placement.
The company has entered into a binding agreement with Newcam Metals for the divestment of the Nelson Bay River iron ore project in Tasmania. The transaction will result in the release of AU$827,200 currently held as a rehabilitation security deposit back to Catalina.
Catalina determined that the project is not part of its active exploration plans and is not central to its near-term capital allocation. The divestment reflects the company’s continued focus on assets considered to provide stronger exploration and development leverage within its core project portfolio.
Catalina Executive Director Ross Cotton said: “The divestment of Nelson Bay River represents a deliberate step in Catalina’s ongoing portfolio optimisation strategy.
“The transaction simplifies the company’s asset base, removes associated rehabilitation and closure obligations, and converts previously restricted security deposits into available working capital.”
In addition, Newcam will participate in a cash placement to subscribe for 3,623,188 shares at 11.5 cents per share, resulting in an aggregate capital raising of AU$416,666.
Proceeds from the placement will strengthen Catalina’s working capital and enhance financial flexibility as it advances priority exploration programs, technical evaluation activities and broader portfolio initiatives.
Following completion of the capital raising, the company’s indicative cash position will be approximately AU$4.32 million.
“The transaction not only strengthens the company’s working capital position but also demonstrates Newcam’s conviction in Catalina’s portfolio and growth initiatives through increased equity participation at premium pricing,” Cotton said.
“Together, these initiatives strengthen the company’s balance sheet and enhance financial flexibility.”
