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Blackham Resources has new substantial shareholder with MACA Ltd holding 12.45% stake

The integrated services contractor has sub-underwriten up to $7.5 million of Blackham's $25.8 million entitlements issue.
Gold bars produced by Blackham Resources
The company is expanding gold production at its Matilda-Wiluna operation in WA

Blackham Resources Ltd (ASX:BLK) has a new substantial shareholder with MACA Ltd (ASX:MLD) now holding more than 386.4 million shares for a 12.45% stake.

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.

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

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.

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

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.

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