Blackham signs $38m funding deal

Blackham Resources has negotiated a $38.5 million funding package from a mining-focused investment firm to complete a feasibility and bring its Matilda gold project into production.

The funding package with Orion Mine Finance includes a $2.5 million placement, valued at the lower of 13 cents a share and the 10-day volume weighted average price, under which Orion will own a 12.5 per cent stake in Blackham.

It also includes a $6 million loan which, together with the proceeds of the placement, will be used to fund a definitive feasibility study on Matilda, as well as for drilling and general working capital requirements.

Upon completion of the feasibility study on Matilda, Orion will provide a $30 million facility.

Orion has nominated Peter Rozenaures to the company’s board as a non-executive director.

Blackham has also entered into an offtake agreement with Orion for 50 per cent of gold produced at the Matilda mine until it has delivered 250,000 ounces to Orion.

The Matilda mine, located in the Northern Yilgarn, has a resource of 4.7 million ounces within a 20-kilometre radius of Blackham’s 1.3 million tonnes per annum plant, gas power station, borefields, and a 350-person accommodation village.

“This funding package will be used to continue extending the Matilda mine life while completing the definitive feasibility study,” Blackham managing director Bryan Dixon said.

“The Orion financing gives Blackham a fully-funded solution to bring the Matilda gold project into production.”

Blackham shares closed 3.1 per cent higher at 16.5 cents each.