ASX-listed Kaiser Reef has completed its acquisition of the Henty gold mine in Tasmania from Catalyst Metals.

The A$31.6-million acquisition includes the high-grade Henty underground operation and associated exploration tenements. Henty has produced 1.4-million ounces of gold at an average grade of 8.9 g/t, and hosts Joint Ore Reserve Committee-compliant ore reserves of 1.2-million tonnes at 4.0 g/t for 154 000 oz.

With the acquisition, Kaiser inherits a permitted 300 000 t/y carbon-in-leach plant, supporting infrastructure and a workforce of more than 150. The company plans to scale production beyond 50 000 oz/y, supported by a five-year mine plan and a broader resource base of 4.1-million tonnes at 3.4 g/t for 449 000 oz.

"We are delighted to officially welcome the Henty gold mine and its team into the Kaiser portfolio," said MD Jonathan Downes. 

"The acquisition of the profitable Henty gold mine significantly strengthens our production base, provides compelling near-mine exploration opportunities, and establishes the company as a leading high-grade gold producer in Australia."

Catalyst, now a 19.99% shareholder in Kaiser, has been flagged as a potential joint venture (JV) partner in the development of Kaiser's Maldon processing plant. 

Downes said Catalyst had built “a strong and profitable operation at Henty over the past four years". “We are committed to building on that success. Their continued involvement as a major shareholder and potential JV partner at Maldon supports a collaborative approach to value creation."

Kaiser said the acquisition was supported by a completed A$30-million placement and a new A$10-million funding facility with Auramet International. The facility includes an A$8-million senior secured gold loan and a A$2-million unsecured prepayment facility. As part of the agreement, Kaiser issued Auramet three-million options, exercisable at A$0.20 and expiring on May 16, 2027.

The company said the current record gold price environment offered an opportunity to generate strong margins from an operation with a stable cost base, and flagged the potential for a market re-rating based on favourable acquisition metrics and production growth.