Bellevue Gold is ready to advance its growth strategy at the Bellevue gold project in Western Australia after acquiring firm commitments for $26.5 million in a share placement.
The company will use the proceeds to provide resource upgrades at and conduct further economic studies for the Bellevue project.
The Bellevue gold project looks promising with its inferred resource sitting at 6.1 tonnes at 11.3 grams per tonne for 2.2. million ounces of gold.
Bellevue will publish its maiden indicated resource in the coming quarter.
The project’s next drilling phase is aimed at achieving ongoing growth, with step-out drilling and exploration drilling being set to be undertaken at the project’s Deacon Iode.
“To complete a raising such as this in any environment is an excellent achievement but to do it in the current market circumstances is exceptional. Under the current budget, we are funded through to mid calendar year 2021,” Bellevue managing director Steve Parsons said.
“The strong support shown by leading institutional investors is a huge endorsement of the Bellevue project and its growth potential.
“The proceeds ensure we have ample cash to continue unlocking the value of this project through infill and resource growth drilling while also undertaking the economic and technical studies which should pave the way for development and production.”
Australian and international institutions contributed to the capital raising, along with other shareholders.
With the placement priced at 30 cents a share, the firm commitment proceeds are well within Bellevue’s existing capital raising allowance, removing the need for shareholder approval.
The share placement will be completed around April.
Bellevue has been committed to restoring the Bellevue mine for a number of years, and is undertaking the first modern exploration of the site that historically produced 800,000 ounces at 15 grams of gold per tonne before it shut down in 1997.