THE BOURSE WHISPERER: Blackham Resources (ASX: BLK) secured up to $72 million in funds to continue to advance the Expansion Definitive Feasibility Study (DFS) at the company’s 100% owned 6.2 million ounce Matilda and Wiluna gold operation in Western Australia.
Blackham Resources said the funds would allow it to manage its balance sheet whilst it continues to demonstrate improving operational cash flows from the operation.
The company explained the funding arrangement is underpinned by the ability to draw up to $72 million from The Australian Special Opportunity Fund, a New York-based institutional investor, managed by The Lind Partners.
Blackham indicated it plans to utilise its operating cash flows to fund the Expansion PFS but will also require a suitable funding solution.
The Lind Facility provides the company with time to choose the optimal funding solution.
Blackham said its final funding solution for the Operation’s Expansion will ideally mean:
• the securing of a fully funded solution for the Expansion;
• minimising dilution to existing Blackham shareholders;
• providing flexible funding solutions to ensure continuation of exploration and reserve definition; and
• facilitating an increase in the company’s current hedge facilities to manage gold price risk.
“As Blackham demonstrates strengthening production from its gold operations and pushes forward with the Expansion DFS, the Lind Facility gives the company maximum flexibility in choosing the best future funding solution for shareholders to grow the Matilda-Wiluna gold operation into a 200,000 ounces per annum long mine life asset,” Blackham Resources managing director Bryan Dixon said in the company’s announcement to the Australian Securities Exchange.
“Lind Partners has long been a supporter of Blackham and we are pleased to have renewed our association with Lind.”