Blackham confirms $35m raising

Gold miner Blackham Resources has confirmed a $35 million capital raising to fund ongoing work at its Matilda-Wiluna operation in the Mid West.

Blackham raised the funds through the placement of 51.5 million shares at 68 cents each, representing a 9 per cent discount to the company’s 10-day volume-weighted average price.

The company will use the funds for its stage 2 expansion studies at the gold operation, with a focus on increasing gold production to 200,000 ounces per annum.

“The funding allows for the Wiluna expansion studies aimed at lifting plant throughput to 3.2 million tonnes per annum,” Blackham managing director Bryan Dixon said.

“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.”

Blackham also announced that Mr Dixon and executive director Alan Thom would sell 1.1 million shares to participants of the placement for tax liability reasons.

The total value of the share sale is worth $1.5 million.

Canaccord Genuity and Petra Capital acted as joint lead managers to the raising.

Blackham shares were 12 per cent lower to 73 cents at 10:40am.