Gina Rinehart sinks $13m into gold junior Catalyst
Gina Rinehart, Australia’s richest woman, is now a substantial shareholder in junior gold explorer Catalyst Metals (ASX:CYL) after stumping up $13m for an 11 per cent stake.
Ms Rinehart’s Hancock Prospecting has spent $4.2m in recent years earning a 50 per cent interest in the Four Eagles gold project in a joint venture led by Catalyst.
But she now has a direct interest in Catalyst as well as an indirect stake through Hancock Prospecting and Gold Exploration Victoria (GEV) – the actual partner in the JV.
Hancock Prospecting released an initial substantial holder notice on the ASX late Friday that showed Ms Rinehart, Hancock and GEV now collectively own about 8.7 million shares.
The shares were acquired through a heavily discounted placement to GEV, which picked up the shares at a $1.50 each.
Catalyst’s share price was down 0.4 per cent on Monday at $2.37, placing the company’s market value at about $187m.
The notice was released in the same week Catalyst hit a massive 1380 grams per tonne (g/t) at its Four Eagles project north of Bendigo in Victoria.
Drilling at the Boyd’s Dam prospect delivered Catalyst its best ever intersection with strong visible gold of 1m at 1380g/t.
The broader intersection measured 8m at 174.5g/t – which is also an extremely high grade – from 84m.
It is what miners call a “bonanza” hit – a term used by miners to describe gold well above the 5g/t level considered high-grade.