Kaiser Reef

Kaiser to acquire the Henty Gold Mine, becoming a multi-asset Australian gold producer

Kaiser Reef Limited ("Kaiser" or "the Company") is pleased to announce that it has entered into a definitive agreement (the “Agreement”) with Catalyst Metals Limited (ASX:CYL) (“Catalyst”) to acquire the Henty Gold Mine and associated Tasmanian exploration tenements (“Henty Gold Mine” or “Henty”).


KEY HIGHLIGHTS

  • Proven production asset with a cumulative production history of 1.4Moz at 8.9g/t Au1 and a track record of replacing mined ounces. Gold produced in the December Quarter totalled 6,594oz, produced at an AISC of A$2,631/oz2
  • JORC compliant Mineral Resource of 4.1Mt @ 3.4g/t Au for 449kozs of contained gold and Ore Reserve of 1.2Mt @ 4.0g/t Au for 154kozs
  • Highly attractive acquisition metric of less than A$1,200 per production ounce4 based on total upfront consideration of A$31.6 million, comprising A$15.0 million cash and 118.6 million shares issued to Catalyst, equivalent to a 19.99% shareholding
  • Acquisition immediately transforms Kaiser into a +30kozpa5, multi-asset gold producer with a clear pathway to grow to a 50kozpa production target
  • Kaiser and Catalyst agree an option to form a strategic partnership in the Victorian Goldfields around the Maldon gold processing plant, including an option to expand the processing plant, supporting both Kaiser’s and Catalyst’s Victorian ambitions
  • Binding commitments received for a A$30 million two-tranche Placement, comprising A$9.1 million under the Company’s existing placement capacity pursuant to ASX Listing Rule 7.1 and 7.1A and A$20.9 million subject to shareholder approval at a general meeting to be held in early May 2025
  • A further A$10 million of funding secured with Auramet International Inc, consisting of a A$8 million senior secured gold loan and a A$2 million unsecured gold prepayment facility ensuring a strong working capital position

TRANSACTION SUMMARY

Kaiser Reef Ltd (ASX:KAU) (“Kaiser” or the “Company”) is pleased to announce that it has entered into a definitive agreement (the “Agreement”) with Catalyst Metals Limited (ASX:CYL) (“Catalyst”) pursuant to which Kaiser will acquire the Henty Gold Mine and associated Tasmanian exploration tenements (“Henty Gold Mine” or “Henty”) for:

  • A$15.0 million upfront consideration;
  • A$16.6 million in shares issued to Catalyst (Catalyst to emerge as a 19.99% shareholder);
  • deferred payments of 50 ounces per month to Catalyst, capped at 3,000 ounces and commencing 6 months from Completion (“Deferred Consideration”);
  • 0.5% NSR royalty on gold produced from the Darwin Target Zone area;
  • Kaiser to reimburse Catalyst A$3.9 million in Environmental Bond Payments to Mineral Resources Tasmania in 12 monthly instalments; and
  • an option agreement through which Catalyst may enter into a joint venture with Kaiser in relation to the Maldon processing plant.

together the (“Transaction”).

STRATEGIC RATIONALE

  • Established production platform: The Henty Gold Mine is an established gold production platform, with historical production of 1.4Moz @ 8.9g/t. Since acquiring Henty in 2021, Catalyst has made significant operational improvements and investments at Henty, including drill platforms, drilling, tailings, underground fleet and people.
  • 5-year mine plan: Work to date has culminated in establishing a robust 5-year mine plan underpinned by a current Ore Reserves of 1.2Mt @ 4.0g/t for 154koz. There is significant scope to extent mine life based on the current Mineral Resource of 4.1Mt @ 3.4g/t Au for 449koz along with the considerable opportunities for near-mine exploration and development success.
  • Significant infrastructure: There is significant infrastructure in place at the Henty Gold Mine including a 300ktpa CIL processing plant, surface & underground workshops, administration complex, access to hydro generated grid power and refreshed tailings storage capacity.
  • Implement and build on operational capacity: Key Kaiser executives have significant experience in the optimisation of similar assets to Henty achieved through a combination of operational improvement and targeted exploration investment. The support from Catalyst as a 19.99% strategic shareholder, along with the addition of the Henty site operating team, a stable & skilled local workforce of +150 employees, will further strengthen the Kaiser team.
  • Flagship asset: With the Henty Gold Mine as its flagship asset, the Kaiser team will provide dedicated focus to continue the significant work completed by Catalyst and further drive operational improvements at Henty.
  • Significant increase to Kaiser’s gold production: the acquisition of the Henty Gold Mine will immediately transform Kaiser into a multi-asset gold producer with +30koz of annual production. The acquisition of the Henty Gold Mine will allow Kaiser to generate immediate cashflow providing the Company with enhanced financial flexibility for further reinvestment, exploration, debt reduction or return to shareholders. The current record gold price environment provides Kaiser with an excellent opportunity to generate strong margins from an operation that has historically held a stable cost base.
  • Re-rating potential: The total upfront consideration of A$31.6 million reflects an acquisition metric of less than A$1,200 per production ounce4. Given the current trading range of small ASX gold producers on an EV/Production basis, the Transaction represents excellent value and a potential re-rating opportunity for Kaiser shareholders.

Kaiser’s Managing Director, Jonathan Downes said:

“We are excited to significantly expand Kaiser’s production base, exploration opportunities and enter into a strategic partnership with Catalyst in Victoria. We look forward to welcoming the Henty team into Kaiser and growing the business together.

“Catalyst has done a great job building a profitable operation at Henty over the last 4 years, with clear production and mine life visibility, plus some great exploration targets. Kaiser will continue to re-invest into Henty and build on what Catalyst has already achieved. We are very pleased to have Catalyst’s continued involvement and exposure to the upside at Henty, both as Kaiser’s major shareholder and through their board representation.

“The option for Kaiser and Catalyst to enter into a 50/50 JV partnership at the Maldon processing plant gives both parties a clear pathway that supports their Victorian ambitions. A Joint Venture can unlock the benefits that would come with plant expansion and increased operational scale, and we look forward to working with Catalyst as JV partners if they execute the option.

“I’m also pleased that Brad Valiukas will be taking a full-time role with Kaiser as Director – Operations. Brad has a wealth of experience in underground mining and helping to grow companies such as Mincor Resources, to their peak period operating 8 mines, and Northern Star, bedding in assets from Newmont, Barrick and Sumitomo. Brad has been instrumental in the changes we have made over the last few months at A1, accelerating the capital development to get below historic workings and setting A1 up to deliver going forward.

“The addition of Henty to our portfolio, alongside A1 in Victoria, positions Kaiser as a >30,000oz old producer and targeting 50,000 ounces of gold production per annum in the short term. Each of the gold projects provides expansion and exploration opportunities and collectively positions Kaiser for a market re-rating in line with our peers. The value metrics of Kaiser are compelling with three gold mines (one on care and maintenance) and two gold processing plants – all held with an enterprise value of A$67 million.”


Click here for the full ASX Release

This article includes content from Kaiser Reef, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

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B2Gold is also pleased to announce that it has published its 2024 Climate Strategy Update. The Climate Strategy Update presents stakeholders with information on how B2Gold manages its climate-related risks and impacts and is the Company's fourth annual report in line with the recommendations of the Task Force on Climate-related Financial Disclosures.

To view or download a copy of the Responsible Mining Report and Climate Strategy Update, and all other documents referred to in this press release, please visit www.b2gold.com/sustainability/esg-reporting-portal

In announcing the release of the Report and the Climate Strategy Update, Clive Johnson, President & CEO of B2Gold, states "As I reflect on the achievements and challenges of the past year, I am particularly proud of the dedication of our people, who continue to drive B2Gold forward. We have successfully navigated dynamic capital markets, regulatory changes, and evolving ESG expectations while maintaining our high standards of responsible mining. Together, we strive to continue to create long-term value for all of our stakeholders, while upholding the level of operational excellence, environmental stewardship, and social responsibility that define B2Gold."

Highlights from the 2024 "Raising the Bar" Responsible Mining Report

Economic Contribution

As a responsible gold miner, B2Gold aims to create and distribute economic value among its stakeholders. B2Gold's economic performance is measured by the economic value that it generates for others, including payments to governments through taxes and royalties, local hiring and procurement and investment in communities. In 2024, B2Gold:

  • Achieved total consolidated gold production of 804,778 ounces (including 19,644 ounces of attributable production from Calibre Mining Corp.);

  • Generated $1.9 billion in annual revenue;

  • Paid $283 million in employee wages and benefits;

  • Invested $12.8 million in its local communities 1 ; and

  • Paid $564 million to governments (through taxes and royalties).

B2Gold is committed to maximizing local and national economic benefits from its contracting and purchasing. The Company is conscious of the high priority that host communities and governments place on local procurement. In sourcing the goods and services necessary to run its operations, B2Gold gives preference to local businesses where possible, provided they meet minimum safety, quality, ethical, and cost requirements. In 2024, over $600 million of goods and services were procured from local and host-country businesses. Several 2024 success stories are outlined in the Report.

People

As a reputable corporate citizen, B2Gold generates national employment and opportunities for people to develop their careers, trains employees to acquire new skills, and opens doors to women, under-represented groups and previously disadvantaged people. The Company fosters positive and productive engagement with employees, provides safe workplaces, and believes that investing in people attracts and retains talented individuals and assists in their abilities to provide for themselves, their families and their futures.

At the end of 2024, B2Gold employed 6,478 2 people across all operations. The Company continues to maintain high local employment rates by targeting recruitment efforts at regional and national levels. Across all operations, 97% of the total workforce, and 58% of Senior Management 3 were comprised of national 4 employees.

B2Gold values a diverse workforce. In recent years, the Company has made significant strides in advancing its Equity, Diversity and Inclusion initiatives. In 2021, the adoption of a Diversity Policy by the Company's Board established a target of 30% female representation on the Board and in management-level positions, underscoring its commitment to promoting and achieving gender diversity at all levels of the organization. B2Gold is pleased to report that as of the end of 2024, 40% of Company directors identify as gender diverse.

Health and Safety

As a result of B2Gold's focus on injury prevention, the Company is once again pleased to report that for the ninth consecutive year, it has maintained a zero-fatality workplace. Additionally, B2Gold's injury rates remain amongst the lowest in the mining industry, with a Lost Time Injury Frequency Rate of 0.05 5 in 2024. These achievements underscore the Company's position as a leader in safety performance within the industry.

Communities

B2Gold maintains its social licence to operate by building trust-based relationships, actively engaging with stakeholders, and implementing community investment activities based on local ownership and development priorities. Highlights of the 2024 community investment programs include:

  • At the Fekola Complex, the 70-hectare Goungoubato Agricultural Project is supporting over 250 households affected by resettlement, directly addressing food insecurity whilst fostering small- and medium-sized enterprise growth through newly formed farmers' associations. Additionally, B2Gold continued its partnership with Global Affairs Canada and its support of the FEMA Project, which aims to improve conditions for women and children living in artisanal mining communities within the Fekola Mine's area of influence. The FEMA Project was initiated in March 2022 and will continue until 2027.

  • At the Masbate Gold Project, investment continued to focus on education, access to health services and facilities, and programs that enhance local economic opportunities, including skills training and small enterprise support. The Training for Employment Program reached its fifth year of partnership in 2024 and remains a powerful driver of economic mobility by equipping individuals with the skills and training needed to build sustainable livelihoods. Over the lifetime of the project, 1,521 individuals have received training and over 600 participants have secured employment.

  • At the Otjikoto Mine, B2Gold Namibia achieved significant milestones that reflect the Company's commitment to meeting critical needs, supporting long-term development, and fostering resilience beyond the life of the mine. Notable achievements include the completion of the Ombili Clinic, which will improve access to healthcare in the region, and the Otavi Water Project, which enhances water security through the construction of a tower and water distribution system.

  • At the Back River Gold District, B2Gold Nunavut continues to strengthen its close relationships with the Kitikmeot Inuit Association and communities across Canada's Arctic. The Company is investing in collaborative projects throughout the Kitikmeot region that promote community wellness, support youth through sports, recreation, and education, and advance initiatives focused on women and Elders. A standout initiative is the Inuit Workplace Experience Program, delivered in partnership with the Redfish Arts Society, which provides Kitikmeot Inuit youth with hands-on training in welding and fabrication—equipping them with valuable skills for employment in Nunavut's growing mineral development sector. B2Gold Nunavut remains committed to working alongside the Kitikmeot Inuit Association to advance further initiatives that ensure the benefits of the Back River Gold District reach the communities of Cambridge Bay, Kugluktuk, Gjoa Haven, Taloyoak, and Kugaaruk.

Environment

B2Gold's remains firmly committed to reducing greenhouse gas ("GHG") emissions, with a target to reduce Scope 1 and 2 emissions by 30% by 2030 against a 2021 baseline. The completion of the Fekola solar plant expansion in early 2025 underscores this commitment by advancing the decarbonization of operations through innovative and sustainable energy solutions. The expanded Fekola facility is expected to supply approximately 30% of the site's electricity demand and reduce annual emissions by an estimated 63,000 tonnes of carbon dioxide equivalent (CO 2 e).

Approach to Reporting

B2Gold is committed to the transparency of its sustainability risks, management and performance. The Report is aligned with the Global Reporting Initiative Sustainability Reporting Standards and the Sustainability Accounting Standards Board Mining and Metals Sustainability Accounting Standard . The Company firmly believes that the mining industry has an opportunity to contribute positively to the United Nations Sustainable Development Goals and it has reported its contribution in this regard since 2018.

Highlights from the 2024 Climate Strategy Update

2024 Highlights

  • B2Gold is committed to a GHG emissions reduction target of a 30% reduction in Scope 1 and 2 emissions by 2030 against a 2021 baseline.

  • The Company continued evaluation of financial impacts of key climate risks identified at sites during previous climate scenario analysis workshops.

  • The total Scope 1 and 2 GHG emissions (for the Fekola, Masbate and Otjikoto operations) remained relatively stable in 2024, with a slight decrease to an estimated 699 thousand tonnes CO 2 e compared to 701 thousand tonnes in 2023. The Company's consolidated GHG emissions intensity was 0.89 tonnes CO 2 e per gold ounce produced in 2024 (compared with 0.71 in 2023), a modest increase driven in part by a reduction in total gold production.

  • The proportion of electricity consumed at B2Gold operations from renewable sources was 21.7% in 2024. At Otjikoto, the proportion of electricity consumed from renewable sources was over 70%.

Looking Forward – 2025 and Beyond

In 2025, B2Gold looks forward to strengthening its global partnerships and deepening its commitment to the diverse communities in which it operates. The Company will continue investing in initiatives that expand vocational training and promote job creation, improve access to education, and enhance healthcare services. B2Gold believes that by building local capacity and fostering strong alignment among governments, communities, stakeholders, and the Company, it can help create resilient, healthy, and prosperous communities throughout the mining lifecycle.

As part of its climate strategy, B2Gold will continue to advance renewable energy initiatives across its operations, supporting its target to reduce Scope 1 and 2 GHG emissions by 30% by 2030 against a 2021 baseline. At the Masbate Gold Project, an 8.2-megawatt ("MW") solar plant is scheduled for installation in 2025, which will further reduce emissions and heavy fuel oil ("HFO") consumption. In Nunavut, following regulatory approvals received in 2024, B2Gold is finalizing project plans and environmental commitments for the proposed Back River Energy Centre—a renewable energy facility that could include up to thirteen wind turbines, solar panels, and battery storage, with the potential to deliver more than 55 MW of clean energy. This facility is expected to significantly reduce reliance on HFO, as well as the number of fuel barges and fuel truck trips along the winter ice road.

Beyond increasing the share of renewable energy in its operations, B2Gold is actively assessing a range of additional carbon reduction opportunities, including energy efficiency improvements, the use of alternative fuels, and optimization of materials movement. The Company remains committed to innovation by working closely with industry-leading partners and staying prepared to adopt emerging technologies that align with its decarbonization goals.

About B2Gold

B2Gold is a responsible international senior gold producer headquartered in Vancouver, Canada. Founded in 2007, today, B2Gold has operating gold mines in Mali, Namibia and the Philippines, the Goose Project under construction in northern Canada and numerous development and exploration projects in various countries including Mali, Colombia and Finland.

ON BEHALF OF B2Gold Corp.

"Clive T. Johnson"
President and Chief Executive Officer

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