19/08/2016 - 11:42

Blackham raises $25m ahead of first gold pour

19/08/2016 - 11:42

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Blackham Resources has completed a $25 million capital raising ahead of achieving first production at its Matilda gold project near Wiluna.

Blackham raises $25m ahead of first gold pour
Blackham's Matilda gold mine in Wiluna.

Blackham Resources has completed a $25 million capital raising ahead of achieving first production at its Matilda gold project near Wiluna.

Perth-based Blackham raised the funds through the placement of 25 million shares at $1 each, representing a small 2 per cent discount to its five-day volume weighted average price.

The proceeds of the raising will be used to fund expansion of resources and reserves at Matilda, which is expected to start producing gold within the next three weeks.

“Blackham is pleased with the strong support received for the placement,” managing director Bryan Dixon said.

“The funding allows for a significant drill budget aiming to lengthen the mine life.

“We will also be fast-tracking the plant expansion study on the Matilda-Wiluna gold project that has a gold endowment greater than 9 million ounces.”

Work on processing and mine infrastructure is largely completed at Matilda, as well as a 290-room camp.

Canaccord Genuity acted as lead manager to the placement, with Petra Capital acting as co-manager.

Blackham shares were 5.2 per cent lower to $1.09 each at 11:45am.

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