PERTH (miningweekly.com) – Gold miner Blackham Resources will raise A$52-million through a share placement and fully underwritten non-renounceable entitlement offer to advance Stage 1 of its expansion plans for its Western Australian gold operations.
An initial A$26-million has been targeted for a share placement to tier one institutional investors, priced at 1c a share.
The share placement will be conducted in two tranches, with the first tranche raising an initial A$11.7-million under the company’s existing placement capacity. The second tranche, of more than 1.4-billion shares, will be subject to shareholder approval, and will raise an additional A$14.3-million.
In addition to the share placement, Blackham will also undertake an entitlement offer to raise a further A$26.2-million, on the basis of four new shares for every nine shares held, also at an issue price of 1c a share.
The proposed entitlement offer will be fully underwritten by the company’s current largest shareholder Delphi Unternehmensberatung.
Blackham told shareholders on Wednesday that in addition to the capital raising, the company will also pursue an indicative, non-binding term sheet with trading group Mercuria Europa Trading for a A$40-million project loan facility.
Assuming the capital raise was successful and the funding facility secured, Blackham would have a total funding package of some A$92-million, enabling the company to progress its operating strategy to complement the existing free milling capacity to include the Stage 1 sulphide concentrate production, and to target an expanded production rate of between 100 000 oz and 120 000 oz a year from early 2021.