PERTH (miningweekly.com) – ASX-listed Blackham Resources will raise A$7-million through a share placement to fund key mine development work programmes to underpin its gold production for 2020.
The capital raise will comprise a A$4-million share to a small number of targeted international and domestic institutional and professional investors, priced at 1c a share.
The placement will comprise 410.9-million shares, which will be issued under the company’s existing capacity.
A share purchase plan, also priced at 1c a share, will raise a further A$3-million, and will allow shareholders to subscribe for up to A$30 000 in new shares.
The issue price represented a 16.7% discount to Blackham’s last closing price, and a 14.8% discount to the five-day volume weighted average share price.
The funds will go towards Blackham’s development work programmes, including pre-production activities at the Williams openpit, a new tailings storage facility, rod mill refurbishment, and for general working capital.