- Blackham Resources will raise $7 million for key mining development work programs
- This will be raised via a $4 million placement at a price of $0.01 per share and a share purchase plan to existing shareholders for up to a further $3 million
- Funds will go towards key mine development work programs that will underpin FY20 production
Blackham Resources will raise $7 million for key mining development work programs.
The capital raising includes a $4 million placement to a number of international and domestic institutional and professional investors at a price of $0.01 per share.
It will also include a share purchase plan to existing shareholders to raise a further $3 million, at the same price as the placement.
The placement price is a 16.7 per cent discount to the last closing price of $0.012 and a 14.8 per cent discount to the five day average price.
The share purchase plan will be for Australian and New Zealand investors. The investors can purchase up to $30,000 worth of shares.
The funds will go towards key mine development work programs that will underpin Blackham’s Financial Year 2020 production.
“Including pre-production activities at the Williamson open pit, a new tailings storage facility, rod mill refurbishment, and for general working capital,” the company said.
Williamson deposit is located in Wiluna, Western Australia and is covered by shallow sediments contained in the largely dry salt lake named Lake Way.
The Williamson open pit produced around 42,000 ounces of gold before ceasing operations in 2006. The price of gold then was $770 per ounce, which now sits at US$1500 per ounce.
Blackham Resources is a Perth based, gold mining company that owns 100 per cent of the Matilda-Wiluna Gold operation, located in Australia’s biggest gold belt.
The Matilda / Wiluna Gold Operation is located near the town of Wiluna, approximately 750 kilometres northeast of Perth.
Blackham Resources has dropped 16.67 per cent and is currently selling shares at $0.010 apiece, as of AEST 11:22 am.