Blackham raises cash for Matilda restart
PERTH (miningweekly.com) – ASX-listed Blackham Resources has secured a A$38.5-million funding package to finance the development of its Matilda gold project, in Western Australia, the gold developer reported on Tuesday.
Production at Matilda was slated to start in the second quarter of 2016.
The funding package with Orion Mine Finance consisted of a A$2.5-million equity private placement, a A$6-million non-amortising loan facility and a A$30-million project finance loan.
Following the private placement, which was subject to Foreign Investment Review Board and shareholder approval, Orion would hold a 12.5% interest in Blackham, and would have the right to appoint a representative to the company’s board.
Blackham also entered into a gold offtake agreement with Orion, which would see the financier claim 50% of gold produced from Matilda, until the company delivered a total of 250 000 oz. The payment price for the gold would be determined in the context of the market at the time of delivery, and would be subject to certain quotational periods.
MD Bryan Dixon said on Tuesday that the Orion financing gave Blackham a fully funded solution to bring the Matilda gold project into production.
“This funding package will be used to continue extending the Matilda mine-life while completing the definitive feasibility study (DFS).”
The project currently has a resource of 4.7-million ounces, all within 20 km of Blackham’s 1.3-million-tonne-a-year plant, capable of producing 100 000 oz/y of gold, a gas power station and an accommodation village.
The A$30-million project loan was subject to the successful completion of a DFS over the Matilda project, as well as securing of all permits.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation