Catalpa Resources CAH

[paul29]

CATALPA’S EDNA MAY GOLD PROJECT – APPROVAL OF FINANCE FACILITY
Highlights
A$67.5M project finance facility with Macquarie Bank
Limited
o A$55M secured loan facility
o Up to A$10M mezzanine facility
o A$2.5M performance bond facility
Gold hedge facility at A$1,544 per ounce
Catalpa Resources (ASX:CAH) has agreed the terms of a credit
approved Project Finance Facility for the Edna May Gold Project.
The Facility which is underwritten by Macquarie Bank Limited is a
significant milestone in the development of the Edna May Gold Project.
The Facility comprises a secured loan of up to A$55M, a standby
mezzanine facility of up to A$10M, a A$2.5M performance bond facility
and a gold hedging facility. The term of the Facilities concludes in the
2015 financial year.
The Facility raises a significant portion of the A$92m required to develop
the Edna May project. Bruce McFadzean, Catalpa Resources’ Managing
Director commented: “This is a significant milestone in the
recommencement of gold production at the Edna May Gold Project. The
Project has exceptional economics at a gold price of A$1,544 per ounce,
which is forecast to realise an average annual cash operating margin of
A$90 million (post royalty).
Catalpa’s mine and processing schedule demonstrate average gold
production in excess of 100,000 ounces recovered per annum for a life of
mine of more than six years. This provides a significant platform to grow
a mid tier gold production company. The strong cash flow forecast from
the Edna May Project will enable Catalpa to expand through exploration
and acquisition.”
Under the hedging facility, Catalpa has sold forward 352,316 ounces of
gold at an achieved fixed flat forward price of A$1,544 per ounce for
delivery from commencement of operations, into the 2015 financial year.
This represents 24% of Edna May’s Resource and is prior to an update to
the Greenfinch Resource and Reserve expected in April 2009 (as
contemplated in the ASX announcement of 18 February 2009

[Sharp737]

Way to go Paul. Formerly called Westonia, now Catalpa and under Bruce MacFadzean's rein's, "we aint seen nuttin' yet"

Sharp

[Huang Chung]

CAH looks interesting.

Lion Selection has a huge stake in CAH, so LST could be another way of getting an (indirect) exposure.

[paul29]

Catalpa raising money for WA gold mine Rebecca Le May
Catalpa Resources Ltd aims to complete its $100 million capital raising this month, as it moves towards commissioning its first gold mine in Western Australia.

The junior explorer on Wednesday secured a $67.5 million finance facility from Macquarie Bank for its Edna May project, despite tight financing markets worldwide.

Catalpa's plans to commence mining in mid-2010 contrasts against a spate of recent mine closures, due largely to a scarceness of project capital.

Catalpa managing director Bruce McFadzean said the estimated capital expenditure for the Edna May project, 2km from the small town of Westonia, was $92 million.

He said cost savings should shave between five and 10 per cent from that figure.

Mr McFadzean said the capital raising target had been rounded up to $100 million so that the miner would not need to return to the market for the foreseeable future.

He said a forthcoming equity raising of around $32.5 million would include an offer to existing shareholders.

"The fact Macquarie Bank backed us before the equity raising was complete speaks volumes about the robustness of the project," he said.

He said it indicated also the bank was bullish about ongoing gold price strength and tipped it would remain around the current level for some time.

The spot gold price in Sydney was $US913.10 per fine ounce on Thursday, up 85 US cents from the previous close.

Under a hedging facility with Macquarie Bank, Catalpa has sold forward 352,316 ounces at $A1,544 ($US993) per ounce until 2014/15.

The Macquarie arrangement includes a standby mezzanine facility of up to $10 million.

Catalpa has agreed to issue Macquarie Bank options over the explorer's fully paid shares, which could give the financier a stake of up to about eight per cent in Catalpa.

Resource investment group Lion Selection Ltd has a 51 per cent interest in Catalpa, which will be diluted after the equity raising.

The Edna May mine is expected to realise an average annual cash operating margin of $90 million, after royalties.

Mr McFazdean said the company would eventually eye acquisition opportunities in the gold sector, possibly overseas, but Edna May would remain its key focus for some time

[Sharp737]

Capital raising completed!! Catalpa is off!! AND no cash issue as such except a share purchase plan (if you want to that is but who wouldn't at that price?).

http://www.asx.com.au/asxpdf/20090331/pdf/31gv1yvl4v3pgk.pdf

This is good....real good....nearly Excellent actually!

Sharp

[Huang Chung]

Edna May looks to be, well, not a cheap operation, so you'd probably want to keep a close eye on the POG and A/US exchange rate.

[airedale]

Hi Huang, CAH have got the finance organised, the machinery is in storage ready to be assembled, the drill results are encouraging. Production is scheduled for next year.
There may be short term weakness in the SP as buyers hold off, waiting to take up a Shareholders allocation at 6 cents.
Over the next year I expect it to do very well. Buy on the dips.;)
Discl: Holding CAH

[Sharp737]

Things starting to firm up quite nicely now...over 9c today - just the beginning IMO

Now for the resource upgrades, one this month for the Greenfinch area which is really looking like another Edna May, and then the Edma May resource upgrade in May.
And of course, the project start in May...goodness, I don't think its the time for selling...wouldn't mind getting some more soon all going well

[airedale]

Hi Huang, CAH have got the finance organised, the machinery is in storage ready to be assembled, the drill results are encouraging. Production is scheduled for next year.
There may be short term weakness in the SP as buyers hold off, waiting to take up a Shareholders allocation at 6 cents.
Over the next year I expect it to do very well. Buy on the dips.;)
Discl: Holding CAH

Application for the Shareholders allocation at 6 cents closes on Friday. Despite that the SP is well above at 7.8 cents. Shows there is still demand for CAH, and no weakness during the allocation period.

[airedale]

After a successful fund raising which raised $39 million for CAH bank account, the company is making good progress towards first gold pour in Q2 2010.
Those taking part in the recent issue at 6 cents are already up 50% with today's close at 9.3 cents.
Discl: holding CAH

[suntboy]

ticking along very nicely Airedale.
I have been following them closely and slowly increasing my holdings in Lion due to their large stake in the company and their stake in HAV/CUY
CAH seem to be gradually getting a following and if they can break the 10 cents and start moving in increments of half a cent they will be away
well done

[Sharp737]

CAH hit A12c today...Nice!

[suntboy]

ticking along very nicely Airedale.
I have been following them closely and slowly increasing my holdings in Lion due to their large stake in the company and their stake in HAV/CUY
CAH seem to be gradually getting a following and if they can break the 10 cents and start moving in increments of half a cent they will be away
well done

As above ...
although I still dont think the jump in price has been fully factored in to Lion yet
if I find time I might try to work out their NTA

Welcome To Suntland

[suntboy]

nope ... too hard for me without a calculator
need an accountant ...SHAAAAAASTA
but at end of april lions worth was 42 mill at 7.5 cnts
if its gone up 50% thats now worth 63 mill
and Lion only have 82 mill shares
lions share price has only risen 10 cents
I dunno you do the maths looks cheap to me(need another beer ,mental anguish )

Welcome To Suntland

[shasta]

nope ... too hard for me without a calculator
need an accountant ...SHAAAAAASTA
but at end of april lions worth was 42 mill at 7.5 cnts
if its gone up 50% thats now worth 63 mill
and Lion only have 82 mill shares
lions share price has only risen 10 cents
I dunno you do the maths looks cheap to me(need another beer ,mental anguish )

Welcome To Suntland

LST's NTA going off it's last ann is...

152m/81m (@ 98.5c) NTA = $1.87

That was using 47% of CAH as being = $43m or ~28cps.

Now if LST has gone up 10c since then (using today's close @ $1.08)

LST's market cap is $1.08 x 82m = ~$88.5m

Let's assume LST's "other" assets have remained the same & CAH is now worth $63m.

Investments = $37m
Cash = $18m
Cracow = $54m
CAH = $63m

That would give LST assets of $37+18+54+63 = $172m

CAH currently at 63m/172m = 36.6cps (increase of 8.6cps or 30%)

LST's new NTA position would be 172m/88.5m = $1.94, (an increase of 7c or 3.7%)

This shows that the majority of the gains are in CAH by having direct exposure.

Mind you LST is trading 45% below NTA, which is a bigger gap then when i held LST!

[suntboy]

cheers mate
sorry to make you bring your work home with you

[shasta]

cheers mate
sorry to make you bring your work home with you

Work is what i bill my time for, doing this is a pleasure...;)

LST looks interesting, again...

[Sharp737]

Nice price rise to 17c...very nice.
And oppies doing well too. What a good share this is

DYOR of course

[Sharp737]

Actually, got to A18c - A new high for CAH

[airedale]

Anyone else following CAH .... it has retreated from resistance at$1.65 to $1.44. I suspect that the weakness is due to the recent conversion of options to head shares.
With the announced upgrade of ore reserves to 1 million+ ozs and gold holding above $1200/oz it may be time to get back in/and or top up.

[airedale]

Despite today's lacklustre market, CAH is up 5.5 cents or 3.4 % to $167.5.

[ronthepom]

Despite today's lacklustre market, CAH is up 5.5 cents or 3.4 % to $167.5.

Hi Gordon,

yes check them every day, still holding, one of mine in the blue --haha looking good mate!

cheers Ron

[Sharp737]

$1.69.5 at the close. Very good. What a company this is going to be. Totally undervalued but now been spotted by one or more of the big boys.
This is going to be interesting.

[ronthepom]

$1.69.5 at the close. Very good. What a company this is going to be. Totally undervalued but now been spotted by one or more of the big boys.
This is going to be interesting.

Yes and i see someone today quietly buying away.