Why is the Black Cat Syndicate (ASX:BC8) share price is moving higher today?

The Black Cat Syndicate share price is gaining today, up 2% in morning trade. We take a look at the ASX gold miner's latest announcement.

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The Black Cat Syndicate Ltd (ASX: BC8) share price is moving higher in early morning trade. At the time of writing, the Black Cat share price is up 1.5% to 68 cents.

Below, we take a look at the ASX gold miner's latest acquisition announcement.

What acquisition did Black Cat report?

The Black Cat share price is moving higher after today. This comes after the company reported it has exercised its option to acquire a 1.5 million tonnes per annum (mtpa) milling facility.

The facility, consisting of 2 mills, will be used at its Kal East Gold Project, near Kalgoorlie, Western Australia. Additionally, the company reports that with 756 square kilometres of tenements, Kal East contains a combined JORC 2012 Mineral Resource of 14.3Mt @ 2.2 g/t Au for 1,025,000 ounces of gold.

Black Cat will acquire the milling facility, inclusive of associated equipment, for a total of $1.24 million. It has already paid $100,000.

The company said it will build the facility in 2021, some 50 kilometres east of Kalgoorlie. Black Cat will initially install 1 of the 2 mills it has acquired. Furthermore, the second mill will be on standby for future milling capacity expansion.

Management commentary

Commenting on the milling facility acquisition, Black Cat's managing director, Gareth Solly said:

The milling facility is ideal for our planned processing facility and includes sufficient grinding capacity for potential future expansion. Due diligence by a team of experts has confirmed that the facility was operated for less than five years, has been well maintained and is in excellent condition. We are currently estimating the impact this milling facility has on our construction schedule and construction cost estimates for both the initial facility as well as the potential expansion case.

Black Cat share price snapshot

Over the past 12 months, the Black Cat Share price has been a star performer, up 166%. Comparatively, that's a gain of 40% on the All Ordinaries Index (ASX: XAO).

The gold price is also up over the past full year, gaining 7.3% to the current US$1,734 (AU$2,266) per ounce. Year-to-date the gold price has dropped 8.7%. This is reflected in Black Cat's shares. So far in 2021, the Black Cat share price is down 7.6%.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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