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Blackham Resources chairman and MD dig deep to support expansion of gold production

Chairman Milan Jerkovic and managing director Bryan Dixon have participated in the company’s $25.8 million rights issue.
Gold coins in a gold bucket
The company is expanding gold production from its Matilda-Wiluna operation in WA

Blackham Resources Ltd (ASX:BLK) directors have shown their confidence in the company’s gold production strategy by participating in a $25.8 million rights issue.

Executive chairman Milan Jerkovic has lifted his direct interest in the WA producer to more than 64.26 million shares with in excess of 8.95 million shares also held in indirect interests.

Managing director Bryan Dixon has acquired shares with a total value of $46,594 and now holds more than 13.53 million shares.

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

Last month the company outlined plans to raise $25.8 million in a fully underwritten five-for-four rights issue priced at 1.5 cents.

Chairman Jerkovic has sub-underwritten $1 million of the issue in addition to committing to take up his rights of around $160,000.

Expansion plan

The funds will be invested in the flagship 100%-owned Matilda-Wiluna Gold Operation.

This investment will include:

  • 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.

READ: Blackham Resources' drilling confirms high-grade gold zones, Williamson deposit extended

Stage I of the expansion is the proposed simple low capital addition of a flotation circuit to increase annual production to 100,000-120,000 ounces.

This will also allow gold production from Blackham’s large sulphide reserves and provide flexibility to process both free milling and sulphide ores.

READ: Blackham Resources and Salt Lake Potash sign split commodity agreement

Stage II 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.

This is expected to increase annual gold production to about 250,000 ounces with significantly lower operating costs.

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