PERTH (miningweekly.com) – Gold developer Bellevue Gold has launched a fully underwritten placement to raise A$100-million to accelerate project development at its namesake project in Western Australia.
A share purchase plan (SPP) will also be launched with the aim of raising a further A$20-million.
The share placement will be undertaken at a price of A$1 a share, representing a 10.7% discount to Bellevue’s last trading price, and a 5.7% discount to its two day volume weighted average share price.
The placement is fully underwritten by Macquarie Capital and Canaccord Genuity.
Following the share placement, Bellevue will offer existing shareholders the chance to participate in a non-underwritten SPP, to raise a further A$20-million, with the SPP also to be priced at A$1 a share.
Proceeds from the raising and the SPP will go towards growing the resource base at the Western Australian project and accelerating its development.
“The proceeds from the raising will help ensure we can unlock the value of what is clearly an exceptional asset with extremely high grades and immense scope for further inventory growth,’ said MD Steve Parsons.
“By implementing our dual exploration and development strategy, we will seek to maximise our ability to create value for shareholders through both resource growth and project development.”
Bellevue recently reported a maiden indicated resource of 860 000 oz, at 11.6 g/t gold at its namesake project, which forms part of the global 2.3-million-ounce resource, at 10 g/t gold.