Blackham Resources draws down $7M to advance Matilda

THE BOURSE WHISPERER: Blackham Resources (ASX: BLK) has negotiated an early drawn down $7 million on its $30 million undrawn debt facility with Orion Mine Finance.

Blackham said the early drawdown funds would be used to fast track the company’s Matilda gold project towards production.

The Matilda gold project is located at the northern end of the Norseman-Wiluna gold belt in Western Australia and has a resource of 4.7 million ounces of gold, all located within a 20 kilometre radius of Blackham’s 100 per cent-owned 1.3 million tonnes per annum processing plant.

Blackham is currently working to complete a Definitive Feasibility Study (DFS) on the Matilda project by January 2016 and be in production by mid-2016.

Blackham has lodged a drawdown notice for the $7 million in funds and expects payment within 10 business days.

The funds will be used for:

Ordering long lead items;

Initial plant and infrastructure refurbishment;

Additional drilling aiming at extending the reserves and mine life inventory; and

Completion of the Definitive Feasibility Study by January 2016.

“Blackham is pleased to have agreed with Orion the early drawdown of funds under the debt facility,” Blackham Resources managing director Bryan Dixon said in the company’s announcement to the Australian Securities Exchange.

“A lot of the DFS work programs have been completed.

“The early drawdown of these funds allows the Blackham team to look beyond the studies and begin the first stages of development work.

“Starting the refurbishment of the plant and infrastructure will allow a more orderly progression into gold production planned for the middle of next year.”