PERTH (miningweekly.com) – Gold developer Bellevue Gold on Friday confirmed a A$106-million fully underwritten share placement to institutional investors, and launched its share purchase plan (SPP) to raise a further A$25-million.

The ASX-listed company earlier this week flagged the funding solution for its namesake gold project, in Western Australia, while confirming a longer mine life and higher production on the back of a Stage 2 feasibility study.

Bellevue is undertaking a share placement to institutional investors, priced at 85c each, to raise A$106-million, which along with a A$200-million debt facility, will be used to fund the development of the Bellevue project.

The company on Friday said that there was strong demand for the placement from both domestic and offshore institutions with bids covering the placement amount by multiple times.

“The strong demand from institutions around the world reflects the quality of the Bellevue gold project, the exceptional free cashflow generation forecast and the immense potential for further growth,” said MD Steve Parsons.

“With the project fully-funded to production, we will proceed full-steam ahead with development while maintaining a strong emphasis on further growth by increasing and upgrading the mineral resources and ore reserves.

“The Stage 2 feasibility study is based on a resource of 1.5-million ounces, which represents just half of the total 3-million-ounce resource base at Bellevue. We have already announced a host of high-grade drilling results outside that resource, we have another 14 000 samples awaiting assay and there are now two rigs drilling from underground,” said Parsons.

“This multi-pronged approach to expanding the resource is aimed at growing the mine life, which will increase the already-strong financial results forecast in this study.”

The placement shares are expected to settle on September 7, and be issued and commence trading on the ASX on a normal basis on September 8.

Meanwhile, Bellevue will also undertake an SPP of up to A$25-million, with the SPP also priced at 85c a share.

The SPP will open on September 13 and close on October 1.

The recent Stage 2 feasibility study estimated that the project would produce some 183 000 oz/y over a mine life of 8.1-years, with capital costs estimated at A$267-million.