Australian gold miner Kaiser Reef has struck a deal to acquire the Henty mine, in Tasmania, from Catalyst Metals in a transaction valued at A$31.6-million, positioning the company as a multi-asset gold producer with yearly output exceeding 30 000 oz.

Under the terms of the agreement, Kaiser will pay A$15-million in cash and issue A$16.6-million worth of shares to Catalyst, giving it a 19.99% stake in the company. The deal also includes deferred payments of up to 3 000 oz of gold, a 0.5% net smelter royalty on production from the Darwin Target Zone, and a reimbursement of A$3.9-million in environmental bond payments.

Kaiser is backing the acquisition with a A$30-million two-tranche placement, with A$9.1-million already secured under existing placement capacity and the remaining A$20.9-million subject to shareholder approval in May. Additional funding of A$10-million has been secured through a senior secured gold loan and an unsecured prepayment facility with Auramet International Inc.

The acquisition immediately expands Kaiser’s production base, with the company targeting an eventual output of 50 000 oz/y. Kaiser will also gain access to Henty’s established production infrastructure, including a 300 000-t/y carbon-in-leach processing plant, underground workshops, and a stable workforce of more than 150 employees.

“We are excited to significantly expand Kaiser’s production base, exploration opportunities, and enter into a strategic partnership with Catalyst in Victoria,” said Kaiser MD Jonathan Downes. “Catalyst has done a great job building a profitable operation at Henty over the last four years. We are pleased to have their continued involvement as a major shareholder and through their board representation.”

The transaction also provides a pathway for Kaiser and Catalyst to form a joint venture at Kaiser’s Maldon gold processing plant in Victoria, an option that could facilitate plant expansion and increase operational scale.

For Catalyst, the sale represents a shift in focus toward its Western Australian assets, including the Plutonic Gold Belt. The company sees the deal as a way to retain exposure to Henty’s upside while allowing a new management team to take over operations.

“Catalyst believes focus is important,” said Catalyst CEO James Champion de Crespigny. “Henty’s operating nature means the time required for it to realize value and upside was costly. This transaction allows Catalyst to focus on Western Australia while still sharing in the upside that can come from a new, more focused operating team.”

The deal also provides Catalyst with an option to acquire a 50% interest in a Victorian processing plant located 100 km from its high-grade Four Eagles gold project. Catalyst believes securing a processing solution in Victoria could unlock further value for shareholders.

With the acquisition, Kaiser’s enterprise value stands at A$67-million, covering three gold mines, one of which is on care and maintenance, and two gold processing plants. The company expects the transaction to position it for a potential market re-rating in line with its peers.