14/03/2016 - 10:15

Blackham raises $20m for Matilda

14/03/2016 - 10:15

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Gold hopeful Blackham Resources has tapped investors for a $20.3 million capital raising to fund ongoing work at its Matilda project near Wiluna.

Blackham raises $20m for Matilda
Blackham's Matilda gold project near Wiluna.

Gold hopeful Blackham Resources has tapped investors for a $20.3 million capital raising to fund ongoing work at its Matilda project near Wiluna.

Blackham received firm commitments for the placement of 45 million shares at 45 cents each to raise the funds, with Canaccord Genuity acting as lead manager and BW Equities as broker.

The placement was a 9.9 per cent discount to Blackham’s 15-day volume weighted average price.

The proceeds of the raising will be used for refurbishment of the Wiluna gold plant at Matilda, as well as further exploration drilling.

Blackham managing director Bryan Dixon said the raising delivers additional financial strength and flexibility to the company.

“To date, Blackham has focused its efforts on re-working known resources from or adjacent to existing open pit and underground workings within the Matilda and Wiluna goldfields,” Mr Dixon said.

“We will continue to strengthen and lengthen our reserves as well as ramp up our search for game changing discoveries in a gold project with a 9 million ounce gold endowment.”

It follows news last week that a definitive feasibility study on Matilda had confirmed a capex of $32 million to bring the mine into production.

Blackham hopes to begin producing gold at Matilda during the third quarter of the year.

Blackham shares were 7.2 per cent lower to 51.5 cents each at 10am.

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