Blackham Resources will receive up to $23 million of investment from New York-based institutional investor Lind Group over a series of tranches.
The gold miner has seen considerable growth in 2018, with production increasing 38 per cent from December 2017 to March 2018 in a record quarter for the company.
Lind is a long-time supporter of Blackham Resources, having first invested in 2012. According to Lind managing director Jeff Easton, the group was “thrilled to invest in Blackham again”.
Lind will pay out an initial $7.5 million in convertible notes to help pay off Blackham’s $13 million short-term debts related to the Orion Fund joint venture (JV).
The payment of this debt will allow Blackham to spend more on finalising its definitive feasibility study (DFS) for the Matilda-Wiluna gold mine in Western Australia. Blackham has the option to pay back Lind in shares or cash.
Matilda has JORC 2012 measured, indicated and inferred resources of 10.7Mt at 1.39g/t for 477,000oz, while Wiluna has 18.6Mt at 2.52g/t for 1.5 million oz.
Blackham received a $38.5 million loan from Orion Fund JV in 2015 for development of the Matilda project, which was later refinanced via an arrangement with MACA, Orion and PYBAR in January 2018.
Bryan Dixon, managing director of Blackham, was pleased with the Lind agreement.
“The current financing from Lind will remove short-term debt service payments, improve our balance sheet and allow us to reallocate operating cash flows to expand production levels,” he said.
“The Lind Partners has been a long-time supporter of and investor in Blackham, and we are pleased to continue our relationship with Jeff Easton and the Lind Partners.”