SYDNEY, AUSTRALIA: Catalyst Metals Limited (ASX: CYL) has entered into a definitive agreement to acquire all of the issued and outstanding common shares of Superior Gold Inc. (TSX-V: SGI) via a plan of arrangement under the laws of Ontario, Canada.

The transaction, in conjunction with Catalyst’s successful acquisition of Vango Mining Limited, provides a compelling opportunity to unlock and maximise value from the world-class Plutonic-Marymia gold belt and support the growth of a new high grade, mid-tier gold mining company on ASX.

The Plutonic gold mine has a 3Mtpa CIL processing capacity via two plants, Reserves of 630,000oz at 3.5g/t and a Resource of 5.9Moz at 3.7g/t.9 With Vango’s Resource of 1Moz at 3.3g/t2, the combined PlutonicMarymia belt will host a significant gold Resource base. In addition, the Transaction includes significant associated infrastructure.

The Plutonic mine site itself is well capitalised with 3Mtpa CIL processing capacity, 364 person accommodation camp, 37 piece underground mobile equipment fleet estimated to be valued at c. A$50m10, airstrip and a 16MW gas fired power station.

Catalyst’s Managing Director, James Champion de Crespigny said: “This is the transaction that Superior and Catalyst shareholders have been looking for. It is a logical consolidation that offers significant potential for operating synergies while also 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 800,000oz at 7.5 g/t. This consolidation joins the high grade Trident and K2 ore bodies, which have 517koz at over 8 g/t gold, and significant potential to grow, with underutilised infrastructure. The industrial logic make sense to all parties.”

Chris Jordaan, President and Chief Executive Officer of Superior said: “We are very pleased to offer shareholders the opportunity we have always proposed, the consolidation of the Plutonic-Marymia gold belt, with a meaningful immediate premium, diversification of assets and cash flow and logically, a listing on the ASX. We believe the Transaction will create a strong platform from which to advance the development of the Plutonic underground mine and surrounding open pit projects.

Shareholders will also benefit from Catalyst’s strong Australian shareholder register, financial strength and portfolio of exploration projects. We would like to thank our indigenous partners, the Jiddi-Jiddi and Gingirana for all of their support. I am confident that, when completed, this Transaction will mean an even stronger future for Plutonic. Catalyst will bring to Plutonic a team with international mining experience, a proven track record of exploration success and the financial resources to develop the district.”