Blackham Resources' shareholders approve funding package for 1.5moz Matilda Gold Project
Blackham Resources (ASX: BLK) shareholders have approved resolutions to secure a funding package from Great Central Gold Pty Ltd.
Earlier in the year, a $13 million funding was secured for the wholly-owned Matilda Gold Project with Great Central Gold Pty Ltd.
Blackham announced that Great Central had agreed to subscribe for 15.79 million fully paid ordinary shares at $0.21 per share to raise $3.32 million.
The first tranche of this placement, being for Shares having a value of $2.31 million, has previously been completed. The second tranche of the Placement, consisting of the issue and allotment of 4,808,000 Shares (having a value of $1.01 million), will be completed within two weeks.
Upon completion of the Placement Great Central will have a voting power in the Blackham of 19.5%.
Matilda already hosts 1.5 million ounces of gold, and is strategically located with 50 kilometres of strike in a major Western Australian gold belt.
Blackham has the largest landholding (>500km2) in the Wiluna goldfield, one of Western Australia’s major Archaean greenstone belts, and is targeting a multi-million ounce gold resource, with converted
resources to reserves in the near term.
Convertible notes
In addition to the Placement, Great Central has agreed to subscribe for 40 million Convertible Notes in Blackham at $0.25 each having a total face value of $10 million.
The Note conversion price of $0.25 per Note was set at 63% premium to the 5 day volume weighted average price for Shares trading on ASX prior to the initial announcement.
The Notes have a maturity date that is five years from the date of their issue. Interest is payable on the Notes at the rate of 8% (paid half yearly).
Timetable for the drawdown
Blackham said that following the general meeting Blackham and Great Central have agreed to amend the timetable for the drawdown and subscription of the Notes.
Under the amended timetable Great Central has agreed to a monthly drawdown of 4,000,000 Notes
(having a face value of $1 million) per month from July 2013 through to April 2014.
The revised drawdown is subject to Blackham receiving any further Shareholder or regulatory approvals that may be required including any ASX Listing Rule waivers required to permit the issue of the first 20,000,000 Notes to Great Central in accordance with the revised timetable rather than within the one month period ordinarily required by Listing Rule 10.13.3.
Great Central has agreed that once all of the 40 million Notes have been drawn down, the Notes will automatically convert into Shares.
Blackham said that it will benefit from the certainty of the amended drawdown timetable as it will result in less interest being payable by the company whilst also removing the requirement for the repayment of the Notes by an agreed conversion date when drawdown is completed.
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