Bellevue Gold Raises $106M

THE BOURSE WHISPERER: Bellevue Gold (ASX: BGL) provided early morning Friday risers something to talk about by announcing it has received firm commitments for a $106 million fully-underwritten share placement to institutional investors at 85 cents per share.

Bellevue Gold said the proceeds of the Placement will combine with an existing $200 million debt facility to fund the development of the company’s Bellevue gold project in Western Australia.

“The strong demand from institutions around the world reflects the quality of the Bellevue Gold Project, the exceptional free cashflow generation forecast and the immense potential for further growth,” Bellevue Gold managing director Steve Parsons said in the company’s ASX announcement.

“With the project fully-funded to production, we will proceed full-steam ahead with development while maintaining a strong emphasis on further growth by increasing and upgrading the Mineral Resources and Ore Reserves.

“The Stage Two Feasibility Study is based on a Resource of 1.5 million ounces, which represents just half of the total three million ounces Resource base at Bellevue.

“We have already announced a host of high-grade drilling results outside that Resource, we have another 14,000 samples awaiting assay and there are now two rigs drilling from underground.

“This multi-pronged approach to expanding the Resource is aimed at growing the mine life, which will increase the already-strong financial results forecast in this Study.”