MACA backs Blackham again with $12m

MACA will provide a $12 million working capital facility for an expansion of Blackham Resources' Matilda-Wiluna operation.

Under the deal, Blackham will issue MACA with 265 million shares at the five-day volume weighted average price as at the close of trade on June 14.

This allotment will increase MACA’s shareholding in Blackham to 19.33 per cent.

The struggling gold miner said the working capital facility would progress its stage one expansion sulphide development for its Matilda-Wiluna operation, at which MACA is a contractor.

It forecast the expansions would allow the mine’s production to rise from 100,000 ounces of gold a year to 120,000oz of gold a year.

The funds will be allocated towards mine planning for further shallow, near-plant free-milling open pit mines and capital works associated with an expanded tailings storage capacity.

It will also go towards the progression of the execution strategy for the Williamson free-milling orebody, and planning and associated works to prepare for the transition to sulphide mining operations in 2020.

In March, Blackham announced a fully underwritten renounceable entitlements issue to raise $25.8 million, of which $10 million will be used to pay debts owing to MACA and The Lind Partners.

As of May 31, Blackham owes MACA $11.3 million.

Blackham executive chairman Milan Jerkovic said the company was very pleased to announce the continued support of MACA.

“This allows the company to continue to prioritise improvements to operational performance and cost reduction to reduce debt and allow for the transition to the stage one expansion sulphide development which will unlock the large sulphide reserves and resources at Wiluna,” he said.

Blackham shares were currently flat at 0.9 cents each at 12.30pm AEST.