This status was reached by the Welshpool, WA-based integrated services contractor on April 15.
MACA is a mining and civil construction company offering contract mining, civil earthworks, crushing and screening and material haulage solutions to the mining industry throughout Australia.
Substantial shareholder status follows MACA agreeing to sub-underwrite up to $7.5 million of Blackham's fully underwritten $25.8 million entitlements issue.
This participation has been applied to a reduction of the trade receivable balance owing to MACA by Blackham.
Funds from the entitlements issue will be used to transition Blackham to become a plus-100,000 ounces per annum gold producer.
Expanding gold operations
This will come through an expansion of the company’s Matilda-Wiluna operations.
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.
Stage II plans
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.