Bellevue Gold is set to accelerate activities at its Western Australian gold project, including growing the existing 2.3 million-ounce resource and advancing development of an underground operation.
The company has received commitments for a $100 million share placement after announcing the funding proposal yesterday. It will also raise up to an additional $20 million through a share purchase plan.
Bellevue’s entire funding package will be raised for $1/share. The company intends to use the funds to grow the resource and its exploration potential, while also progressing development of the underground mine, including a production decline and infrastructure, establishing non-processing infrastructure and covering general working capital costs.
The proposed infrastructure includes camp facilities, road upgrades and power and communication upgrades, and connecting the project, which is 400 kilometres north-west of Kalgoorlie to valuable export routes.
Bellevue’s capital raising comes after it announced plans on Tuesday to transition the project to the development phase, after its drilling efforts confirmed a high-grade resource.
The Bellevue resource includes high-grade core of 480,000 ounces at 15.5 grams of gold per tonne. It remains open in all directions and is conveniently located in close proximity to existing underground infrastructure.
Bellevue is now advancing stage two drilling at the site and intends to further increase the indicated resource during the December quarter of 2020.
Managing director Steve Parsons said the strong commitment to the capital raising validated the quality of the Bellevue gold project.
“The proceeds from the raising will help ensure we can unlock the full value of what is clearly an exceptional asset with extremely high grades and immense scope for further inventory growth,” Parsons said.
“By implementing our dual exploration and development strategy, we will seek to maximise our ability to create value for shareholders through both resource growth and project development.”