Blackham raises funds to advance Matilda expansion

PERTH (miningweekly.com) – ASX-listed gold developer Blackham Resources has raised A$35-million through a share placement to expedite the expansion of its Matilda/Wiluna operation, in Western Australia.

The company on Friday announced that some 51.47-million shares, priced at 68c each, will be placed to institutional investors under the company’s available capacity. The issue price represented a 9% discount to Blackham’s ten-day volume weighted average price prior to a trading halt on February 8.

“The funding allows for [expansion studies to be undertaken at] Wiluna, aimed at lifting plant throughput to 3.2-million tonnes a year,” said Blackham MD Bryan Dixon.

On the back of a 25% increase in the Matilda/Wiluna resource, Blackham was evaluating the addition of a 1.5-million-tonne-a-year crushing, grinding and flotation circuit to feed the existing bacterial oxidation plant, in addition to the recently refurbished 1.7-million-tonne-a-year oxide circuit.

“Geological and mining studies to date demonstrate strong grades for an operation of this size. The initial expansion plan is expected to be completed in the near term, and having a strengthened balance sheet will allow us to expedite Blackham’s sizeable growth plans,” Dixon said.

In addition to the placement, Dixon and executive director Alan Thom will sell some 1.1-million shares to participants in the over-subscribed placement. The sales, cumulatively, will total A$1.5-million, and will be made to meet tax liabilities arising from each director of three-million performance shares.