Bellevue Gold Announces $18.5M Placement

THE BOURSE WHISPERER: Bellevue Gold (ASX: BGL) has launched a fully underwritten institutional placement to raise approximately $18.5 million.

Bellevue Gold is offering the placement at 57 cents per share, which represents an 8.8 per cent discount to the closing price of the company’s shares on 23 July 2019 of 62.5 cents per share.

The company declared the placement will strengthen its balance sheet and in conjunction with its existing war chest of $20 million of cash, will enable it to undertake exhaustive infill drilling to further define its existing resource base, in addition to expanding its step-out exploration drilling program over the next 12 months.

The placement is fully underwritten by Canaccord Genuity (Australia) Limited and will result in approximately 32.4 million new fully paid ordinary shares in the company issued to sophisticated, professional and institutional investors.

Bellevue indicated the proceeds from the placement will be used to fast-track several key initiatives at the Bellevue gold project, including ongoing step-out resource growth exploration drilling, an infill drilling program to seek to convert existing inferred resources into measured and indicated resources, and other pre-development activities.

Meanwhile, in conjunction with the placement, the company’s Board members Ray Shorrocks (non-executive chairman), Steve Parsons (managing director) and Michael Naylor (executive director) declared their intention to sell shares in the company at the offer price.

The Director Sell-Down will acount for up to approximately 12 million shares, for total proceeds of up to approximately $6.8 million.

Bellevue highlighted that a portion of the sale proceeds from the Director Sell-Down will be used by Steve Parsons and Ray Shorrocks to exercise outstanding options that they currently hold in Bellevue Gold.

Specifically, Parsons will utilise sale proceeds from the Director Sell-Down to exercise approximately 15 million outstanding options, which will result in him holding approximately twice as many shares in the company as prior to the Director Sell-Down.

“The Director Sell-Down represents the first occasion that the Directors have sold any shares in the company,” Bellevue Gold said in its ASX announcement.

“Furthermore, the company notes that since the appointment of Steve Parsons as a Director on 31 March 2017, the Bellevue Gold share price has appreciated from 3.8 cents to 62.5 cents, representing an approximate 16 fold increase.”