Blackham raises A$35m to accelerate expansion plans

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Blackham Resources announced that it has raised A$35 million through a Placement to fast track its existing growth strategy.

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According to the company, the placement proceeds will be used at its wholly owned 6.4Moz Matilda/Wiluna Gold Operation to expedite the conversion of the large resource base into reserves and improve and lengthen the mine life.

Additionally, Blackham will use the funds to accelerate studies to enhance the Stage 2 expansion economics and to commit to Stage 2 engineering and long lead items immediately on finalisation of feasibility.

Blackham, which has commenced a 60,000m drill programme around the Wiluna Open pits, currently has 2 RC and 1 diamond rig double shifting with a view to upgrading the Wiluna open pit resources announced over the last two months, to measured and indicated resource.

Managing Director Bryan Dixon said the raising had been heavily undersubscribed and had received strong institutional support from both existing and new shareholders.

“The funding allows for the Wiluna expansion studies aimed a lifting plant throughput to 3.2Mtpa. Geological and mining studies to date demonstrate strong grades for an operation of this size,” he added.

“The initial expansion plan is expected to be completed in the near term and having a strengthened balance sheet will allow us to expedite Blackham’s sizeable growth plans.”