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  • Blackham Resources Receives First Tranche Of $13m Funding Deal 0 comments
    Feb 18, 2013 11:16 PM

    Blackham Resources (ASX: BLK) recently snared a $13.32 million funding package, which includes a placement at a 37% premium, with a private company controlled by leading mining industry entrepreneur Joseph Gutnick - who has been appointed Blackham chairman.

    The funding package has been secured for Blackham's Matilda Gold Project, which has 1.5 million ounces of gold resources in a major Western Australian gold belt.

    Blackham has now received the first tranche of the deal, which is $2.31 million, and comprises just under 11 million shares at $0.21, and represents the maximum available to be issued under Blackham's existing 25% capacity.

    The second tranche of 4.8 million shares will be completed following receipt of necessary regulatory and shareholder approvals. At completion of the Placement Great Central will have a 19.5% interest in the company.

    In addition to the placement, Great Central has agreed to subscribe for $10 million in Convertible Notes in Blackham, with the conversion price of $0.25 cents set at 63% premium to the 5 day VWAP prior to the initial announcement. The Notes have a maturity date five years from the date of issue and have an interest rate of 8% (paid half yearly).

    Australian Special Opportunity Fund converts note

    Blackham said that The Lind Partners, LLC, manager of the Australian Special Opportunity Fund and the Canadian Special Opportunity Fund, has converted its $175,000 convertible note into fully paid ordinary shares.

    Following the $13 million funding agreement with Great Central, Blackham and Lind have agreed to terminate the Lind Funding Agreement announced on 26 April 2012.

    Joseph Gutnick

    On joining the Blackham board, Joseph Gutnick commented: "I am excited to be back involved in the Western Australian gold industry. I have had a lot of success in the Northern Yilgarn Province previously and believe there is a lot more gold to found there."

    Gutnick has been a director of numerous mining companies including Great Central Mines Ltd which he built into one of Australia's most successful gold mining companies. Under his stewardship, GCM discovered the Plutonic Gold Mine and explored, developed and operated the Bronzewing and Jundee Gold Mines, three world-class gold mines that continue to operate today.

    GCM produced over 780,000oz of gold per annum at its peak. GCM also previously owned the Rosemont, Wiluna, and Matilda Gold Projects. He was awarded the Diggers award at the 1997 Diggers and Dealers Industry Awards and is a former Director of the World Gold Council. He is also a Fellow of the AusIMM.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

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