Bellevue receives extra $15m for gold project

Bellevue Gold has received extra funding to progress its namesake project in Western Australia after its recent share purchase plan closed oversubscribed, raising $35 million.

The company early last month launched a $120 million capital raising comprised of a $100 million placement and $20 million share purchase plan to fund an ongoing step-out drilling program at Bellevue’s gold project.

Bellevue is seeking to expand the project's existing 2.3 million ounce resource, near the town of Leinster in the Northern Goldfields.

The share purchase plan, which was priced at $1 per share, closed last Friday.

Bellevue today said strong interest in the SPP required the company to scale back applications after demand exceed $20 million.

The company says it will refund shareholders the difference in new shares issued to them and the parcel of shares applied for under the SPP.

Around 35 million shares will be issued on August 18.

The oversubscribed SPP brings total proceeds from the capital raising to $135 million, which Bellevue managing director Steve Parsons says shows confidence and support from shareholders.

“Given market circumstances around COVID-19, it prevented us from offering a SPP in our last raise, so it’s been great to reward [retail shareholders] this time round,” he said.

Bellevue had launched a $26.5 million share placement in March to fund drilling programs, which Mr Parsons said would continue until mid-next year.

The company was trading 7.7 per cent lower at 3:29pm AEST to $1.02.