Blackham Resources plans to raise $36 million through an entitlements issue that will help underpin a “transformational 2018” for the Western Australian gold miner.
The five-for-two renounceable entitlements issue represents the final step in Blackham’s recapitalisation strategy, the company reported.
Blackham’s 2018 strategy involves achieving strong cashflow from its Matilda/Wiluna gold operations, repaying a $23 million project financing facility, continuing exploration, and finishing the year in a net cash position.
Milan Jerkovic, Blackham chairman, said the company could now move forward with the final stage of its recapitalisation strategy with the fully underwritten entitlements issue.
“Blackham will be well funded with a strong balance sheet to enable us to focus initially on a simple free milling plan at the Matilda-Wiluna gold operation and enjoy a period of stable gold production having recently accessed high-grade zones,” Jerkovic said.
“The company is at an exciting stage, with 2018 expected to be a transformational year of strong operational performance that is likely to generate significant cash flow and value for Blackham and its shareholders.”
Blackham announced last week that MACA, Orion Fund JV and PYBAR Mining Services had provided sub-underwriting pre-commitments of up to $8 million, $2.5 million and $2.5 million for the entitlements issue.
However, due to a high level of investor interest, MACA, Orion and PYBAR’s commitments have been reduced to up to $2 million, $1 million and $1 million, respectively.