02/09/2021 - 14:30

Bellevue launches $106m placement

02/09/2021 - 14:30

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Bellevue Gold says it is fully funded to bring its namesake project in WA to production after raising $106 million from a share placement and finalising a $200 million loan with Macquarie Bank.

Bellevue is raising $131 million to fund the development of its namesake gold project in WA. Photo: Bellevue Gold

Bellevue Gold says it is fully funded to bring its namesake project in WA to production after raising $106 million from a share placement and finalising a $200 million loan with Macquarie Bank.

Bellevue announced the placement and loan today, along with a $25 million share purchase plan.

It has also completed an updated feasibility study for its Bellevue gold project, located 400 kilometres northwest of Kalgoorlie.

The project is now expected to produce about 200,000 ounces per annum within the first five years of operations, up from 160,000ozpa.

Its life of mine (LOM) has improved from 7.4 years to 8.1 years.

Total forecast earnings over the LOM have increased by 46 per cent to $2.4 billion while all-in sustaining costs have improved to $1,013/oz.

The project now holds a pre-tax net present value of $1.3 billion, up from $876 million.

First production is expected in the June quarter of 2023.

The updated study was based on an increased indicated resource of 1.4 million ounces (with a grade of 6.1 grams per tonne of gold) and a higher throughput rate of 1 million tonnes per annum.

Bellevue managing director Steve Parsons said only half of the project's 3moz resource sat within the mine plan.

“Since we completed the current resource estimate in July, we have announced a number of strong drilling results from outside this inventory," he said.

“These results demonstrate the potential for further increases in the annual production rate and mine life.

“With this in mind, we have designed the processing plant so that it can be expanded quickly and in a cost-effective manner.”

Today, Bellevue announced it had secured a $200 million underwritten and credit-approved loan from Macquarie Bank, following from "very strong market interest" from 13 financial institutions.

“The significant size and timing of Macquarie’s commitment and its election to take fees in equity is indicative of Macquarie’s long-term confidence in the Bellevue gold project,” Mr Parsons said.

Macquarie, Canaccord Genuity, and Goldman Sachs Australia are acting as joint lead managers to the placement, through which Bellevue will issue about 125 million shares at a price of 85 cents each.

The company is seeking to raise a further $25 million from an SPP, priced on the same terms.

Bellevue, which raised more than $160 million last year, said it was now fully funded to bring its project to production.

The company entered a trading halt today, expected to lift on September 6.

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