Zuleika Gold (ASX: ZAG) is celebrating a major legal win after reaching a final settlement in relation to its long-running Plutonic gold mine litigation against Catalyst Metals (ASX: CYL).
After five years of various legal battles, Zuleika will receive $48 million in a combination of Catalyst shares and cash payments, while relinquishing a 4.1% interest in mining lease 52/183 and the K2 Area gold deposit.
The proceedings were finally resolved by mutual agreement through private mediation after the matter looked headed to the Supreme Court—a trial that will no longer proceed.
Right to Earn 50% JV
The lengthy proceedings related to Zuleika’s right to earn up to a 50% joint venture interest in parts of the Plutonic gold mine including beneficial ownership of the key K1, K2, and PHB-1 deposits, as well as the K2 area.
Zuleika was also seeking damages related to certain milestone payments from Catalyst subsidiary Vango Mining.
Under the decision, Catalyst will issue $31m worth of CYL shares, along with an immediate cash payment of $15m and an additional $2m by 13 May 2026.
In return, Zuleika will forgo its interest in all tenements owned by Catalyst and its entities.
Advancing Gold Projects
Executive chair Annie Guo said Zuleika could now turn its attention to advancing its portfolio of gold assets and pursuing further growth opportunities.
"This settlement marks an important milestone for Zuleika and a significant win for our shareholders—successfully ending this five-year litigation has required considerable resolve and an unwavering commitment to protecting Zuleika’s rights."
Catalyst, meanwhile, said that settlement of the dispute would allow it to accelerate mining and exploration activities in a key area of the Plutonic Gold Belt, adding that it had already spent more than two years resolving a range of legal disputes since acquiring the property.
"The resolution of this matter provides a clear pathway for Catalyst to progress mining and exploration activities at both the K2 mine and the surrounding area of the belt," the company said.
