Western Australian gold mining company Blackham Resources has announced that contractor MACA is to loan the company $14.3 million to help repay its $14.8 million debt to financier Orion.
Among other things, MACA’s loan is intended to provide the means for a free milling mine at the company’s Matilda-Wiluna gold mine, and Blackham intends to pay MACA back early (monthly repayments of $1 million commence from March 2019).
Blackham chairman Milan Jerkovic called the loan a significant milestone that would allow the company to move forward.
“The company plans to repay the remainder of its Orion facilities and normalise working capital using internally generated cash flows by the end of 2018, targeting a net-cash position by the end of the calendar year,” he said.
“We appreciate the strong support that each of Orion, MACA and PYBAR have given us in order to affect our recapitalisation strategy.”
In addition, refinancing to the tune of $13 million will take place as part of a $36 million underwriting agreement between Orion, MACA and previous Blackham contractor PYBAR, which is managed by broker Hartleys.
The majority of this $13 million in commitments will come from MACA, which is providing $8 million, while Orion and PYBAR are providing $2.5 million each. In addition, Jerkovic has also committed $500,000 as well.
MACA managing director Chris Tuckwell commented that the company was pleased to provide support to Blackham and hoped to work with them “for many years to come”.