Photo by: Bloomberg
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.