THE BOURSE WHISPERER: Blackham Resources (ASX: BLK) is shouting from the roof tops of West Perth with news it has struck an agreement for a $38.5 million Funding Package for the company’s Matilda gold project in Western Australia.
The deal has been done with mining-focused investment house Orion Mine Finance.
Blackham said the funding should result in the Matilda project in production by Quarter 2, 2016.
Basically the extensive chunk of cash will allow the company to finally bring Matilda to being, which is a welcome shot in the arm, especially given the recent Boardroom battle it was embroiled in with its former suitor.
As part of the package Blackham will head down to Officeworks to buy a new chair to place around the boardroom table for Orion nominee Peter Rozenauers to take up a position as a non-executive director.
The Funding Package consists of a $2.5 million equity private placement, a $6 million non-amortising loan facility, and a $30 million project facility loan.
Blackham has also entered into a gold offtake agreement with Orion.
Blackham Resources managing director Bryan Dixon said in the company’s announcement to the Australian Securities Exchange.
“Blackham are extremely pleased to have agreed the funding package and we welcome Orion onto the company’s register and their nominee director Peter Rozenauers to our Board,”
“This funding package will be used to continue extending the Matilda mine life while completing the definitive feasibility study.
“The Orion financing gives Blackham a fully-funded solution to bring the Matilda gold project into production.”
The Matilda gold project is located in the Northern Yilgarn of Western Australia.
The project has a resource of 4.7 million ounces all located within a 20 kilometre radius of Blackham’s 100 per cent-owned 1.3 million tonnes per annum plant.