Catalyst Metals Ltd (ASX:CYL) has completed the acquisition of TSXV-listed gold producer Superior Gold Inc (TSX-V:SGI, OTCQX:SUPGF), marking the conclusion of their court-approved plan of arrangement under the laws of Ontario, Canada.
Superior Gold’s principal asset is the historical Plutonic Gold Mine in Western Australia.
The mine reportedly has a gold resource of 5.9 million ounces at 3.7 g/t, reserves of 630,000 ounces at 3.5 g/t and a 3 million-tonne-per-annum carbon-in-leach (CIL) processing capacity via two plants.
Natural consolidation
Catalyst managing director James Champion de Crespigny said in February that the plan of arrangement is a logical consolidation that offers significant potential for operating synergies while lowering risk.
“The combination of the large resources, big processing capacity and considerable exploration upside gives the combined group genuine scale, long mine life, strong cashflow and outstanding growth prospects, all in the heart of a world-class gold belt in WA. We think this will better appeal to all investors.
“The Plutonic Gold Belt is significant by any world measure. It has historically hosted high quality deposits – ie. Timor was over 800,000 ounces at 7.5 g/t. This consolidation joins the high grade Trident and K2 ore bodies, which have 517,000 ounces at over 8 g/t gold, and significant potential to grow, with underutilised infrastructure. The industrial logic make sense to all parties,” de Crespigny explained.
Delisting in Canada
As per the terms of the arrangement, each Superior Gold shareholder will receive 0.3571 of an ordinary share in Catalyst for every common share held before the completion.
The plan, which was first announced in February, received the nod from Superior Gold shareholders on 26 June and the court's approval on 28 June.
Superior Gold has applied for the delisting of its shares from the TSX Venture Exchange (TSXV), which is expected to take effect later today.
Filing of reports
Following the completion of the arrangement, Catalyst has become a reporting issuer in multiple Canadian provinces, including British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, and Nova Scotia.
Accordingly, the ASX-listed gold producer and explorer will file several technical reports on Canada’s System for Electronic Document Analysis and Retrieval (SEDAR) to comply with the National Instrument 43-101 — Standards of Disclosure for Mineral Projects (NI 43-101).
The reports are for the Henty Gold Mine in Tasmania, Vango Mining in WA, the Bendigo Project in Victoria, and the 2022 mineral resource and reserve estimate for the Plutonic gold mine.