SYDNEY, AUSTRALIA: Catalyst Metals Limited (ASX: CYL) entered into a Bid Implementation Agreement to offer a bid to acquire Vango Mining Limited (ASX:VAN).

The offer is consistent with Catalyst Metal’s strategy to control high-grade gold belts in Australia, with Vango’s highly prospective Marymia Gold Project having +40 kilometres of under-explored strike along the world-class Marymia-Plutonic gold belt in Western Australia.

In addition, the Offer, if successful, will enable Catalyst to apply its significant exploration expertise, along with its operational learnings from its high-grade Henty Gold Mine in Tasmania to an aggressive exploration program across Vango’s highly prospective and strategic tenement package.

Vango Mining’s tenements host an existing Resource of 1Moz at 3.3 g/t and are located immediately adjacent to the Plutonic gold mine, which is an operating mine with a Resource of 6Moz, Reserve of 600koz and 3Mtpa CIL processing plant.

Catalyst Managing Director & CEO James Champion de Crespigny said: “This transaction is important for Catalyst and Vango shareholders. It turns a new leaf for the future of both companies.

The combined group will have the financial strength and technical expertise to unlock the value of the prospective Marymia tenements. There is immense potential to create significant value for all shareholders by driving an aggressive exploration strategy on what has already proven to be a +15Moz Australian gold belt”.

Vango Executive Chairman Bruce McInnes said: “Bringing together Marymia’s huge exploration upside and the funding and technical knowledge of Catalyst makes enormous sense for all shareholders. It is the ideal recipe to create value for all Vango shareholders and therefore the Board supports the bid unanimously”.

The Offer provides Vango shareholders with an opportunity to become shareholders in a gold mining company with scale, production diversification and complementary high grade gold portfolios across three significant gold belts in Australia. Vango shareholders will also become shareholders in a financially stronger company, with enhanced trading liquidity and investment appeal.

Under the offer, Vango shareholders will be entitled to receive 5 fully paid ordinary shares in Catalyst Metals for every 115 Vango shares held.

Based on Catalyst’s last closing price on 6 January 2023 of $1.205, the implied value of the Offer Consideration is approximately $66.0 million or $0.052 per Vango Share.

On successful completion of the Offer, Vango shareholders will own approximately 35.7% of the enlarged Catalyst.