- Bellevue Gold (BGL) has received firm commitments from institutional and sophisticated shareholders to raise $26.5 million through a share placement
- The placement is priced at 30 cents per share and will not require shareholder approval
- Bellevue’s Managing Director, Steve Parsons, considers this an excellent achievement considering the current market circumstances
- The funds will go towards infill and resource extension drilling programs at the Bellevue Gold Project in WA
- Currently, Bellevue is aiming to upgrade its project’s inferred resource to the indicated category
- This is expected in the upcoming quarter
- Bellevue Gold is up 26.2 per cent and shares are trading for 41 cents each
Bellevue Gold (BGL) has received firm commitments to raise A$26.5 million through a share placement.
The gold explorer and producer received support for the raise from leading Australian and overseas institutions, including existing institutional and sophisticated shareholders.
The placement is priced at 30 cents per share, which represents a 7.7 per cent discount to Bellevue’s last trading price of 32.5 cents.
Because the placement was undertaken within Bellevue’s existing capital raising allowance, shareholder approval is not required.
“To complete a raising such as this in any environment is an excellent achievement but to do it in the current market circumstances is exceptional,” Managing Director Steve Parsons said.
Mr Parsons claims the company is now well-funded until mid-2021.
The $26.5 million funds will go towards infill and resource extension drilling programs at the Bellevue Gold Project. Funds will also go towards general working capital and developmental economic studies.
The inferred resource for the Bellevue Gold Project currently stands at 6.1 million tonnes at 11.3g/t for 2.2 million ounces of gold.
On March 18, Bellevue completed the first phase of infill drilling at its project of the same name. This drilling is aimed at upgrading the shallow resource areas and selected deeper lodes into the Indicated category.
The company is now on track to publishing its maiden indicated resource in the upcoming quarter.
The next phases of drilling are aimed at growing the overall resource inventory. Bellevue will do this through step-out and exploration drilling at two high conductors which were identified at the Deacon lode which was discovered late last year.
The historical Bellevue Gold Project is located approximately 30 kilometres north of Leinster in WA and sits in a major gold and nickel producing district on the Wiluna-Norseman gold belt.
The placement is expected to be completed on or around April 1 2020.
Bellevue Gold is up 26.2 per cent and shares are trading for 41 cents each at 12:56 pm AEDT.