Catalyst originally posed itself as an explorer play on the Whitelaw Belt. That's when Gina Rinehart bought in, as her Gold Exploration Victoria company had a similar focus.
Then for some reason CYL decided to invest in a tiny 6k/qtr mine in Tasmania. OK, a diversion, but nothing compared to what came next.
Now, CYL is attempting to takeover a claims package, of a marginal low-grade former major-owned operation, in remote (fly-in/ fly-out) WA. More to the point, CYL will turn over 35% of their equity in their Whitelaw Belt claims to Vango's shareholders.
What's the explanation? The potential of the Whitelaw Belt was supposedly the core focus of CYL.
If and when enough Vango shareholders agree to take CYL's script instead of cash, and the merger goes through, as far as I can tell CYL is then saddled with Vango's debt: $9 million owed Collins St, whatever Vango has spent of the $5 million credit line, the court costs claims of Superior and Zulieka, $400k owed Vango's JV partner, and whatever else Vango has spent in the meantime.
Once Vango's debt are somehow handled, then there's the question of funding the Marymia restart. K2, the ore body closest to re-start, is encumbered by Zuleika's 4% ownership, and a potential earn-in of up to 50% by Superior. Kori/Mark claims there are substantial (read 'expensive') barriers to a K2 restart.
I don't see how CYL avoids having to try a substantial dilutive share offering.
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