Catalina Resources Ltd (CTN.ASX) $1.29M in Restricted Capital Unlocked
Catalina Resources Limited (ASX:CTN) announced that the transfer of the mining lease for the Nelson Bay River Iron Ore Project in Tasmania has been executed by both Catalina and Newcam Minerals Pty Ltd (Newcam) marking a key milestone in the divestment announced on 24 February 2026.
HIGHLIGHTS
- NBR divestment provides for recovery of $1.29 million in rehabilitation security.
- $827,200 in rehabilitation security to be released by the Tasmanian Government with receipt expected prior to November 2026.
- Further $466,000 retained bank guarantee, with Catalina entitled to the proceeds upon its subsequent release.
- Released capital to advance Catalina's Mid-West gold projects, including exploration at Kirkalocka adjacent to a 2.0Mtpa processing plant.
- Drilling planned at Kirkalocka and Tallering from November 2026, with contractors provisionally secured and heritage clearance the final outstanding element.
Under the binding Heads of Agreement, the project is being divested for nominal cash consideration with Newcam assuming the project's rehabilitation, environmental and closure obligations upon completion.
The divestment provides for the recovery of up to $1.29 million in rehabilitation security, comprising $827,200 expected to be released ahead of November 2026 following the lodgement of an equivalent security by Newcam, and a further $466,000 in retained bank guarantee security. The initial release will provide additional working capital for Catalina's upcoming exploration campaign, while the Company remains entitled to the proceeds of the retained guarantee upon its subsequent future release by the Tasmanian Government.
The divestment will provide Catalina with a clear exit from its Tasmanian operations, removing the ongoing obligations associated with NBR once the transfer and applicable regulatory processes are completed.
Executive Director, Mr Ross Cotton commented:
"The NBR divestment represents a clear exit from Tasmania and will unlock $1.29 million of capital that can be directed into our Mid-West portfolio.
With contractors provisionally secured and heritage clearance the final outstanding requirement, our focus is firmly on getting drilling underway.
At Kirkalocka, we will test priority gold targets adjacent to existing processing infrastructure, while at Tallering we will investigate the extent of the tungsten mineralisation identified through historical drilling.
This is about directing capital where it counts - into the ground, generating exploration results and advancing our Mid-West projects."
Capital Deployment - November Drilling Campaign
The recovery of rehabilitation security will release capital previously committed to a non-core asset, providing additional funding to advance Catalina's Mid-West exploration strategy.
Kirkalocka is a priority, with Catalina seeking to identify and establish a gold resource adjacent to the Kirkalocka Gold Mine and its existing 2.0Mtpa processing plant. The planned approximately 3,000m maiden RC drilling program will test priority targets at Highway, Capra, Avis and Two Mile Bore.
Released funds will also contribute to drilling at Tallering, where Catalina will investigate the extent and continuity of tungsten mineralisation identified through historical exploration.
Drill contractors are provisionally secured for both programs, with heritage clearance the final outstanding requirement ahead of planned drilling from November 2026.
The investment reflects Catalina's focus on growing its resource base and pursuing development opportunities supported by existing regional infrastructure.
Kirkalocka - Targeting Gold Near Existing Infrastructure
The Kirkalocka Project is located adjacent to the Kirkalocka Gold Mine, which hosts a gold Mineral Resource of approximately 240koz and an existing 2.0Mtpa processing plant currently undergoing refurbishment.
Historical exploration has identified several gold prospects, including Highway, Capra, Avis and Two Mile Bore, with significant results including:
- 1m @ 23.08g/t Au from 18m (08KLRC033);
- 6m @ 1.79g/t Au from 42m (KKA796) at Highway;
- 6m @ 1.38g/t Au from 27m (KKA795) at Highway; and
- surface sampling of up to 9.89g/t Au (sample 17959) at Avis.
Recent exploration by Catalina has focused on field reconnaissance and geological mapping at the priority Capra, Avis and Two Mile Bore prospects, supported by strategic rock chip sampling and a broader a soil geochemistry sampling program comprising approximately 1,500 samples.
The planned approximately 3,000m maiden RC drilling program will test priority gold targets at Capra, Avis, 2 Mile and Highway. The project's proximity to existing processing infrastructure provides potential future development options, including toll treatment, subject to exploration success and commercial assessment.
Tallering - Tungsten Exploration
Historical exploration at the Santy target within Catalina's Tallering Project has defined a 2.2km gold anomalous trend along strike from the A Zone and Mixy gold deposits, while subsequent review and fieldwork has highlighted an additional tungsten-polymetallic opportunity.
Historical drilling returned 17m @ 0.178% WO3 from 79m (SRC006), including 4m @ 0.367% WO3, with individual intervals up to 0.839% WO3. A further 3m @ 0.154% WO3 from 99m to EOH (SRC007) ended in mineralisation.
More recently, Catalina fieldwork returned rock-chip results of up to 0.62% WO3, 1,480ppm Mo, 12,300 ppm Bi, 1.96% Cu, 530 ppm Ag and 5.70g/t Au. The tungsten-molybdenumbismuth association, together with an untested eastern IP conductivity anomaly, has further refined priority areas for follow-up.
The planned drilling program will test the IP anomaly to assess the extent and continuity of the mineralised system and assess the potential for a larger tungsten discovery.
The Kirkalocka and Tallering programs are expected to generate new exploration results from late 2026, supporting Catalina's broader strategy of growing its resource base and advancing priority projects towards development.
Capital Allocation and Exploration Priorities
The Nelson Bay River divestment supports Catalina's strategy to simplify its portfolio and focus capital on its Mid-West projects. The release of the funds will contribute to planned drilling at Kirkalocka and Tallering, where heritage clearance is the final outstanding requirement ahead of commencement.
By redirecting capital from a non-core asset into priority exploration programs, Catalina is advancing its objectives of building regional scale, growing its resource base and establishing a pathway towards production.
*To view tables and figures, please visit:
https://abnnewswire.net/lnk/8PHVVME8
Investors - Shareholders Ross Cotton Executive Director T: +61 (0)8 6165 8858 Investor Enquiries George Ventouras George@corporatestorytime.com T + 61 (0) 418 945 353
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