• GLOBAL NEWS news
Global Global
Black Cat is set to receive additional cash flow from mining and processing Star of Mangaroon ore, as well as greater operational flexibility to Paulsens, by allowing higher-grade ore to be prioritised through the plant while stockpiling lower-grade ore for processing at a later date. Strategic exposure, through the first rights, for additional discoveries around the prospective Star of Mangaroon deposit.
Freepik. com
AUSTRALIA:
JOINT VENTURE TO PROCESS ORE FROM STAR OF MANGAROON
Black Cat to provide funding to develop and haul Ore from the Star of Mangaroon open pit.
A joint venture between Black Cat Syndicate Limited and Dreadnought Resources Limited will see both companies develop and process ore from the Star of Mangaroon open pit deposit. The companies announced they had signed a binding agreement in December 2025.
The Star of Mangaroon is a high-grade gold deposit located 330km south-west of Black Cat’ s owned Paulsens Gold Operation. Dreadnought recently completed an upgraded Scoping Study for the deposit, which estimated mined production of 93kt at 8.3g / t Au for 24koz Au, operating cashflow of AUD78.2-million( after capital and tax AUD5 500 / oz) over one year at an AISC of AUD2 020 / oz.
According to the terms of the agreement, Black Cat is to engage and manage contractors as well as provide all funding, up to AUD10-million, to develop and haul ore from the mine’ s open pit. Should development funding exceed AUD10-million, the companies will contribute additional funding 50:50 and also share a surplus cash flow from the project, a 50:50 split for the first AUD80-million and then 70 % Dreadnought, 30 % Black Cat for any additional surplus cash flow beyond AUD80-million.
Ore mined( up to 110 000 tonnes) will be processed at Paulsens under an Ore Purchase Agreement. Dreadnought will also receive an advance payment of its joint venture distribution, equalling 5 % of revenue( less processing costs) from each processing campaign until positive cash flow is achieved.
While Black Cat is granted a first right to enter into similar agreements for any other mining operations around Star of Mangaroon and a right to match any bona fide third-party offer to acquire the Dreadnought owned tenements.
Black Cat’ s managing director, Gareth Solly, said:“ The Star of Mangaroon is an excellent project that dovetails nicely into our Paulsens’ strategy. The high-grade feed will allow Paulsens to preferentially treat high-grade Ore from the Paulsens underground while stockpiling lower-grade material, increasing total gold production in the short to medium term. In addition, Black Cat has exposure to further discoveries around the Star of Mangaroon, which we see as highly prospective.”
Ongoing activities pursuant to these arrangements include:
• Dreadnought to secure all necessary permits, approvals and licences by 30 April 2026.
• Within 60 days of receiving all approvals, Black Cat is to negotiate and secure all contracts for the commencement of mining activities.
• Establishment of a new Black Cat entity to manage and fund( up to AUD10-million) the development of the Star of Mangaroon.
• Mine planning, scheduling and integration with Paulsens processing strategy underway.
As part of the terms and conditions applied through precedent, Dreadnought is to have all approvals to commence mining no later than 30 April 2026. Black Cat will negotiate and secure all contracts for the commencement of mining activities within 60 days of final approvals.
With regards to funding, Black Cat will solely fund mining up to a maximum financial commitment of AUD10-million; thereafter, if needed, all further funding is to be contributed equally by Black Cat and Dreadnought. Any funding from Black Cat is considered a project expense and fully refundable before any joint venture disbursements( excluding the 5 % prepayment to Dreadnought). •
Source: supplied by Black Cat Syndicate Limited
According to the terms of the agreement, Black Cat is to engage and manage contractors as well as provide all funding, up to USD10-million, to develop and haul ore from the mine’ s open pit.
10 • African Mining • March 2026 www. africanmining. co. za