Exploration and development company Blackham Resources has secured a $13m funding package for its Matilda gold project in Western Australia.
The company has agreed to a private placement with Great Central Gold, a private company controlled by leading mining industry entrepreneur Joseph Gutnick, whereby Great Central will be issued 15.79 million Blackham ordinary shares at $0.21 per share, to raise $3.32m.
Expected to be completed in two parts, the funding is offered at a 37% premium to the five day volume weighted average price (VWAP) of Blackham shares as on 1 February 2013.
Following the purchase, Great Central will own a 19.8% interest in Blackham.
Great Central will also subscribe for $10m in convertible notes in Blackham, representing a 63% premium to the five day VWAP.
Blackham Resources managing director Bryan Dixon said that this funding will add value at Matilda, despite a challenging market for emerging gold companies.
Commenting on the agreement with Blackham Resources, Gutnick said, "I look forward to exploring and developing world-class gold mines in a province where I have enjoyed much success."
Image: The funding is expected to add value to Blackham’s gold project. Credit: Bertrand Rieger/Corbis.