Blackham Resources has secured A$60m ($45.6m) in funding from Pacific Road Capital for its 6.5Moz Matilda-Wiluna Gold Operation.
The company plans to use the Pacific Road Funding Package and Entitlement Offer to re-finance the current debt facility, strengthen and lengthen reserves, as well as complete expansion studies.
The Wiluna-Matilda Gold Operation is located in Australia’s gold belt, which stretches from Norseman through Kalgoorlie to Wiluna.
It now includes resources of 65Mt at 3.1g/t for 6.5Moz Au, all within 20km of the company’s wholly owned 1.8Mtpa plant, gas power station, borefields and accommodation village.
Almost the entire Wiluna Goldfield has been consolidated within a 1,100km² tenement package, which has produced more than 4.3Moz.
The new loan facilities have the first repayment date in June 2020.
The Pacific Road funding package includes A$7.35m ($5.59m) equity private placement, the sub-underwriting for A$2.65m ($2.01m), as well as loan facilities totalling A$50m ($38m).
Blackham has significantly de-risked both the open pit and underground operations over the last one year and completed mine development in the Golden Age underground in July this year.
On 30 August, the company announced the successful results of the Wiluna Expansion preliminary feasibility study, which demonstrated improved economies of scale supporting the expansion of the Matilda-Wiluna Operation to 3.3Mtpa.
Over the last 20 years, the operation depended predominately on an underground feed with a short reserve life.