Prominent mining identity Joe Gutnick will join Blackham Resources as its new chairman after providing it with a $13 million financing package for the Matilda gold project near Wiluna.
Blackham announced today it had agreed to make a private placement to Mr Gutnick’s privately-held company, Great Central Gold, priced at 21 cents per share to raise $3.32 million.
In addition to the placement, Great Central has also agreed to subscribe for $10 million worth of convertible notes.
As part of the deal, Mr Gutnick has also agreed to become Blackham’s new non-executive chairman.
Shares in the company closed 10 cents, or 67 per cent, higher at 25 cents.
“Mr Gutnick’s agreement to be chairman of the company and to personally provide a large funding package at a significant premium is an important validation of the quality of the Matilda gold project and recognition of the success we have had in advancing the project over the past year,” Blackham managing director Bryan Dixon said.
“In addition, Mr Gutnick’s extensive knowledge and experience will be a valuable addition to the board.”
Casimir Capital acted as lead manager for the placement and the convertible note.
