Catalina Resources (ASX:CTN) repositions portfolio with Breakaway Dam copper acquisition and Auric North gold platform

Catalina Resources has announced a strategic portfolio repositioning that reshapes its exposure across both copper and gold, centred on the acquisition of the Breakaway Dam Copper Project and the establishment of a second district scale gold growth platform through the purchase of Auric North Pty Ltd, alongside the divestment of its Laverton assets.

The transaction reflects a deliberate shift toward technically advanced, drill ready assets supported by recent drilling, defined exploration pathways and a balance sheet structure designed to preserve capital flexibility.

Highlights

• Acquisition of 100% of the Breakaway Dam Copper Project, a copper dominant volcanic massive sulphide system with confirmed sulphide mineralisation and recent diamond drilling results including 9.2m @ 0.48% Cu, with internal higher grade intervals of 0.95m @ 1.18% Cu and 1.7m @ 1.05% Cu, and a separate 1.47m @ 1.97% Cu intersection

• Asset swap with Forrestania Resources, with consideration to be satisfied through the issue of 13,831,010 shares at $0.069, together with multiple tranches of options, subject to shareholder and regulatory approvals

• Strategic placement of $0.5 million with Newcam Minerals Pty Ltd at $0.069 per share, strengthening the balance sheet and supporting near term exploration activity

• Acquisition of 100% of Auric North Pty Ltd, securing a contiguous gold portfolio of approximately 45,000 hectares across Western Australia’s Mid West, with historical intercepts at Peak Hill including 10m @ 1.43 g/t Au including 5m @ 2.7 g/t Au

Breakaway Dam represents a copper dominant VMS system with a well defined stratigraphic setting, alteration, lithological controls and geophysical support, with downhole electromagnetic surveys identifying multiple conductive plates and a staged exploration pathway incorporating follow up drilling and further EM surveying.

Recent diamond drilling by Forrestania intersected copper bearing sulphide mineralisation across all completed holes, confirming continuity within the targeted VMS horizon and demonstrating stacked sulphide zones with internal higher grade copper shoots.

These results, including the 9.2m @ 0.48% Cu intersection and the 1.47m @ 1.97% Cu interval, provide technical validation of the system and underpin the project’s classification as drill ready with a pipeline of follow up targets along strike and at depth.

The transaction structure involves the divestment of Catalina’s Laverton assets in exchange for the Breakaway Dam project, with consideration delivered through equity and options rather than cash, preserving capital while providing a multi tranche funding pathway aligned to progressively higher valuation levels.

The structure includes options exercisable at $0.115, $0.23 and $0.345 with varying expiry dates, creating a scalable capital framework tied to future exploration success.

The company has also secured a $0.5 million placement with Newcam Minerals Pty Ltd, a privately held mining company with operating gold and iron ore assets in the Mid West, which Catalina describes as providing third party validation of its acquisition and growth strategy.

In parallel, Catalina has executed a binding agreement to acquire Auric North Pty Ltd, establishing a second district scale gold growth platform across five exploration licences and one prospecting licence covering approximately 45,000 hectares in the Mid West region.

The portfolio includes Deflector North, Peak Hill, Big Bell North, Big Bell South and Boodanoo, with proximity to operating gold mines, regionally significant shear systems and favourable structural settings.

At Peak Hill, historical air core drilling has returned 10m @ 1.43 g/t Au from 65m including 5m @ 2.7 g/t Au, while the Big Bell North and South tenements cover a combined 14,500 hectare position along strike from the >5 Moz Big Bell system, and Boodanoo encompasses approximately 26,500 hectares over around 40 km of largely untested greenstone belt.

Executive Director Ross Cotton described the portfolio repositioning as a disciplined step in broadening commodity exposure while maintaining a focus on scalable growth platforms, noting that

“this transaction reflects a disciplined and selective approach to adding copper exposure to Catalina’s portfolio. Breakaway Dam stood out as an opportunity with clear exploration momentum, a well defined pathway for advancement and the potential to grow through a staged, considered approach. Importantly, it complements the Company’s existing gold assets and supports a broader strategy focused on building a balanced and scalable exploration portfolio.”

The board has highlighted that its copper exposure is supported by board level experience, with Chairman Karl Simich having founded Sandfire Resources and overseen the development of the DeGrussa Copper Gold Project, experience the company considers relevant as it advances a technically mature VMS system.

At the same time, the Auric North acquisition broadens Catalina’s footprint across highly prospective Archean gold terranes, with low cost entry and full ownership providing flexibility for technical review, site inspections and data verification across multiple targets.

Looking ahead, Catalina’s stated strategy centres on concentrating capital and management effort on priority growth assets, with Central Yilgarn retained as the flagship gold platform, complemented by the newly acquired Breakaway Dam copper project and the district scale Auric North gold portfolio.

The company has positioned the transaction structure and recent placement to support near term exploration while maintaining balance sheet flexibility, setting the framework for advancing a portfolio that now spans both copper dominant VMS systems and large scale gold districts within Western Australia.

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