JOHANNESBURG (miningweekly.com) – ASX-listed Blackham Resources has taken a major step towards completing the refinancing of its 6.5-million ounce Matilda/Wiluna operation, in Western Australia, with an agreed initial A$60-million funding package with Pacific Road Capital.
The proceeds will be used to refinance Blackham’s current debt facility, strengthen and lengthen reserves, complete expansion studies and provide additional working capital.
The new loan facilities have the first repayment date in June 2020, which means the company’s short-term working capital position will be improved significantly.
Blackham will also launch a renounceable rights issue to raise A$12.3-million at 12c apiece. Pacific Road has offered to sub-underwrite up to A$2.65-million of the offer, while it also includes a A$7.35-million equity private placement and loan facilities totalling A$50-million.
Blackham is studying the expansion of its Matilda/Wiluna operation. A prefeasibility study (PFS) focused on the construction of a new crushing and grinding circuit to increase throughput by 1.5-million tonnes to 3.3-million tonnes a year, the construction of a new flotation circuit, the refurbishment of the existing sulphide treatment plant, and the construction of a new carbon-in-leach circuit.
The The expansion PFS has confirmed gold production averaging 207 000 oz/y from the Matilda/Wiluna operation.