Blackham to raise $3m

Shares in Blackham Resources have plummeted after it announced it had received commitments for $3.15 million at 11.5 cents per share to fund exploration and development studies at its Matilda gold project.

The company has secured subscriptions for $450,000 through a placement of 3.91 million ordinary fully paid shares to sophisticated and professional investors.

UK-based institutional investor Lanstead Capital L.P. will provide a further $2,200,000 by way of subscription for 19,130,455 shares.

Following the announcement, Blackham shares dropped 24.62% to 9.8 cents at close on 30 October 2014.

The company’s share price has fallen 61% since July.

Additionally, Blackham proposes to raise $1,150,000 in an offer to existing shareholders of which $500,000 is underwritten by BBY Limited.

Blackham acquired the neighbouring Wiluna gold project in the northern Goldfields this year from delisted Apex Minerals including a ready-built plant, infrastructure and tenure.

The deal increased the company’s resource to 40Mt @ 3.3 g/t for 4.3Moz.

Blackham's share price fell 24.6 per cent to 9.8 cents per share at the close of trade.