Proactive Investors - Run By Investors For Investors

Blackham Resources outlines $25.8 million rights issue to unlock gold production growth

Funds will be used to transition Blackham to become a 100,000+ ounces per annum producer.
capital raising concept
The rights issue is fully underwritten and the record date is next Tuesday 26 March

Blackham Resources Ltd (ASX:BLK) has outlined plans to raise $25.8 million in a fully underwritten five-for-four rights issue priced at 1.5 cents.

Notably, Blackham’s executive chairman Milan Jerkovic has sub-underwritten $1.0 million of the issue in addition to committing to take up his rights of around $160,000.

An interim step to 250,000 ounces annual production

The funds will be invested in the company’s flagship 100% owned Matilda-Wiluna Gold Operation in Western Australia.

This includes:

• Operational improvements to existing operations;
• Completion of the expansion definitive feasibility study (DFS) during the September quarter;
• A material drill program targeting high-grade underground reserve expansion; and
• Paying down debt and ongoing working capital.

The Expansion DFS includes Stage 1 and Stage 2

Stage 1 is the proposed simple low capital addition of a flotation circuit to increase production to 100,000-120,000 ounces per annum.

Stage 1 will also allow gold production from Blackham’s large sulphide Reserves and provide flexibility to process both free milling or sulphide ores.

Stage 2 is the proposed new comminution, flotation cells and leach circuits and a refurbished BIOX® Plant to increase ore processing throughput to 2.2-3.3 million tonnes per annum.

This is expected to increase gold production to ~250,000 ounces per annum with significantly lower operating costs.

READ: Blackham Resources to boost Matilda-Wiluna gold production with low capex expansion

Offer summary and proposed timetable

View full BLK profile View Profile

Blackham Resources Ltd Timeline

Related Articles

Fort Cady Borate Project in Southern California
March 10 2019
The company has a strategic cooperation agreement with a borate consumer subsidiary of Sinomach.
Massive sulphides at TopTung’s new Alotta Nickel-Sulphide Project in Quebec, Canada
October 31 2018
The company’s shareholders have approved an acquisition as it advances a new corporate strategy.
Pacific American Coal's Elko coking coal project in Canada
January 10 2019
The company drilled the project in 2018 and is waiting on laboratory assays.
Copyright © Proactiveinvestors.com, 2019. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use