Kaiser Reef Limited (ASX: KAU) has finalized its acquisition of the Henty Gold Mine from Catalyst Metals Limited (ASX: CYL), marking a pivotal moment for the company as it transitions into a multi-asset Australian gold producer. The acquisition is expected to immediately boost Kaiser’s annual gold production to over 30,000 ounces, with a clear growth pathway to exceed 50,000 ounces per annum.
The Henty Gold Mine boasts a rich history, having produced 1.4 million ounces of gold at an average grade of 8.9g/t. It holds JORC Ore Reserves of 1.2Mt @ 4.0g/t Au for 154koz. The mine is equipped with a fully permitted 300ktpa CIL plant and well-established infrastructure, supported by a skilled workforce of over 150 employees. This acquisition provides Kaiser with a robust operational platform and significant near-mine exploration opportunities.
Catalyst Metals now holds a 19.99% share in Kaiser, fostering a strategic partnership that could lead to joint development of the Maldon processing plant. To finance the acquisition, Kaiser successfully completed a $30 million placement and secured a $10 million funding facility with Auramet International Inc.
Jonathan Downes, Managing Director of Kaiser, expressed his enthusiasm for the acquisition, emphasizing the mine’s potential to strengthen Kaiser’s production base and establish the company as a leading high-grade gold producer in Australia. The total upfront consideration of A$31.6 million translates to less than A$1,200 per production ounce, indicating excellent value and potential for a re-rating of Kaiser’s shares.
The acquisition positions Kaiser to generate immediate cash flow, enhancing its financial flexibility for further reinvestment, exploration, debt reduction, or returns to shareholders. The current favorable gold price environment further amplifies the opportunity for Kaiser to generate strong margins from Henty’s historically stable cost base.
