Blackham Resources (ASX: BLK) is ready to ramp up exploration at the Matilda Gold Project in Western Australia’s Wiluna gold belt - where last month bonanza grade gold was discovered - after securing new funding.
The funding injection for Blackham is up to A$9.15 million, with the arrangement underpinned by an A$8.125 million investment from The Australian Special Opportunity Fund, a New York-based institutional investor, managed by The Lind Partners.
As part of the funding package, Blackham has agreed to separately issue 4.881 million shares at A$0.21 to private investors, which will raise an additional A$1.025 before costs.
Bryan Dixon, managing director of Blackham, commented on the strong institutional support:
“The Agreement with Lind, along with the concurrent Placement to sophisticated investors, will allow Blackham to advance exploration efforts with hopes of unlocking significant value at its Matilda Gold Project.
"These agreements ensure that our ongoing efforts are fully funded as we advance Matilda over the coming months.”
Matilda - recently acquired and evolving
Blackham finalised the acquisition of the Matilda Gold Project late in 2011, after acquiring 100% of Kimba Resources, the owner of the project which includes the Matilda and Williamson Gold Mines and numerous other deposits and prospects.
In January Blackham confirmed an Inferred Resource at Matilda of 10.2 million tonnes at 1.8g/t for 601,000 ounces of gold, including 301,000 ounces remaining at the Williamson Mine since the completion of mining.
In doing so this confirmed an acquisition cost for the Matilda Gold Project of just $5 per gold ounce, which is considered to be good value when compared to other Western Australian gold project acquisitions, the prospectivity of the region and the close proximity to an existing gold plant.
Another upside to the acquisition is the potential for early cash flow from a toll treating agreement.
At around the same time the acquisition was completed, Blackham and Apex initiated discussions with regard to the possibility of processing ore through Apex Minerals’ (ASX: AXM) Wiluna gold plant, which could provide additional funding for Blackham to explore the area.
With the acquisition, Blackham now has one of the largest landholdings in the mining centre and one of Western Australia’s major Archean greenstone belts.
Funding agreement breakdown
Under the Agreement with Lind, Blackham will receive A$250,000 on execution in the form of a A$175,000 Convertible Security and AU$75,000 as a prepayment for ordinary shares in Blackham.
Lind will further invest A$75,000 to A$225,000, in monthly share subscriptions, over the next three years. The Convertible Security will not be converted for a period of 180 days from the date of the agreement.