PERTH: Catalyst Metals Limited’s wholly owned subsidiary, Kite Operations Pty Ltd have entered into an earn-in and joint venture agreement with gold producer St Barbara Limited.
Under the agreement, St Barbara may acquire a 50% participating interest in EL006507 (the Drummartin Project) by funding not less than $3.5 million of Project Expenditure within 48 months of commencement of the earn-in (Commencement Date).
St Barbara may withdraw from the joint venture if it has funded at least $1 million of project expenditure within two years of the Commencement Date. As St Barbara is a substantial shareholder of Catalyst, the agreement is conditional on Catalyst obtaining shareholder approval within 90 days of the date of signing.
For so long as St Barbara and Kite Operations each hold a 50% participating interest, St Barbara will have the right to appoint the manager of the Drummartin Project.
Kite Operations will be the operator of the project, with primary responsibility for the on ground local operations, but may be replaced in certain circumstances, including an insolvency event, material breach of obligations and a change of control of Kite Operations or Catalyst.