CATALYST METALS LIMITED (CYL)

The suspension of trading in the securities of Catalyst Metals Limited will be lifted immediately, following the release by CYL of an announcement regarding a material capital raising and project acquisition.

The company releases an Investor and capital raising presentation.

The company issued a notice of Proposed issue of Securities - CYL.

Outstanding drill results at Boyd's Dam during 2020 continue. Major exploration programs totalling c. A$16 million to drill 80,000m in next 12 months across Catalyst's standout high grade Victorian gold projects. Catalyst to acquire the Henty Gold Mine and associated Tasmanian exploration tenements from Diversified Minerals. High grade, fully operational gold mine in major mineral province (8Moz historical production) with significant operational and near mine exploration upside. Proven production asset with a cumulative production history of 1.4Moz at 8.9g/t Au and a track record of replacing mined ounces. JORC compliant Mineral Resource of 2.4mt @ 4.3g/t Au for 334kozs of contained gold. Recent exploration drilling restarted at Henty post the JORC Resource estimation has delivered high grade gold intersections in the upper part of the mine near existing development. Catalyst to leverage exploration expertise with 40,000m drilling program in first 12 months to target high grade, upper proportion of mine to expand high grade inventory. Highly attractive acquisition metric of A$60 per JORC Resource ounce based on upfront A$20.0 million consideration comprising a staged payment of A$12.0 million cash and A$8.0 million in Catalyst shares. Additional deferred contingent payment of up to A$5.0 million based on mine cashflow in first 12 months. Acquisition immediately transforms Catalyst into a high-grade gold producer with a premier exploration growth platform across Bendigo, Victoria and Henty, Tasmania. Various growth initiatives including major exploration programs at Boyd's Dam and Henty and the Acquisition to be funded via a single tranche Placement to raise approximately A$18.0 million (before costs), a Share Purchase Plan offer of approximately A$2.0 million to existing shareholders and existing cash reserves. Placement well supported by major shareholder and Joint Venture partner St Barbara Limited, in proportion to its shareholding, alongside the introduction of new institutional investors and Kirkland Lake Gold Ltd, the owner of the Fosterville Gold Mine in Victoria. SPP to raise approximately A$2.0 million at the placement price will be offered to eligible shareholders. All of Catalyst's Directors intend to participate in the SPP to the maximum extent possible. Following completion of the Acquisition and Capital Raising, Catalyst to emerge with a strong cash position of up to A$24.6 million and no hedging and no debt.

The securities of Catalyst Metals Limited will be suspended from quotation immediately under Listing Rule 17.2, at the request of CYL, pending the release of an announcement regarding a capital raising and project acquisition.

listed entity carried for record purposes only