Kaiser Reef Reports Record Gold Pour at Henty Mine Post-Acquisition

Kaiser Reef (ASX:KAU) said on Monday (May 26) that 10 days after taking ownership of the Tasmania-based Henty mine, the asset has achieved a record pour likely exceeding 1,200 ounces of gold.

The company closed its acquisition of Henty from Catalyst Metals (ASX:CYL,OTC Pink:CTYMF) for AU$31.6 million on May 16, positioning itself as a multi-asset gold producer.

The deal was first announced toward the end of March, with both parties agreeing that AU$15 million would be paid in cash and the remaining AU$16.6 million would be covered by an issue of Kaiser shares to Catalyst.

Through the transaction, Catalyst now owns a 19.99 percent stake in Kaiser.

”It’s been an excellent start for Kaiser at Henty, the team is transitioning well and operational performance has been excellent,” said Brad Vallukas, Kaiser's executive director, operations, in Monday's announcement.

“We are well positioned to build on the success that Catalyst has had at Henty as it becomes our flagship asset.”

Kaiser also shared that its acquisition of Henty has transformed it into a 30,000 ounce per year gold producer.

Located 23 kilometres from Queenstown, Henty has produced 1.4 million ounces of gold since mining started in 1996. Its output for the 2024 fiscal year came to 25,000 ounces, and the site consists of an underground mine and a conventional carbon-in-leach processing plant with a nameplate capacity of 300,000 tonnes annually.

While Kaiser is positioning Henty as its flagship property, it has other gold assets in Australia: the A1 gold mine in Eastern Victoria and the Maldon gold mine and Maldon processing plant, also in Victoria.

Maldon is currently on care and maintenance, but historically produced 2.1 million ounces of gold. A1 is one of Australia's longest-operating mine sites, and to date has produced 600,000 ounces of gold. The company's short-term goal is for A1 to produce 1,000 ounces of the yellow metal on a monthly basis.

"Kaiser is now a significantly stronger Company with the incorporation of Henty, and we look forward to advancing our assets and the Company," Vallukas said in the firm's release.

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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.