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  • Black Mountain Resources' Secures A$3M, Targets Silver Production 0 comments
    Dec 23, 2013 11:19 PM

    U.S. focused silver-gold play Black Mountain Resources (ASX: BMZ, AIM: BMZ) has secured Strategic financing of A$3 million provided by ASX listed silver producing company Alcyone Resources (ASX: AYN).

    Black Mountain will allocate the funds towards bringing New Departure Silver Project into production and facilitate ongoing development of the Conjecture Silver Project.

    The company holds a 70% interest in the New Departure Silver Project, the Conjecture Silver Project and the Tabor Gold and Silver Project pursuant to 45 year leases from Chester Mining Company, Lucky Friday Extension Mining Company and Brush Prairie Minerals respectively.

    Black Mountain plans to implement low cost production and development programs across all three assets. It is also implementing exploration programs to capitalise on the exploration upside potential apparent across its portfolio.

    Key Funding Terms:

    - The A$3 million loan facility is for 36 months (bullet repayment) with interest payable at a rate of 12% pa payable annually;

    - The company may repay any funds drawn early provided a minimum of 12 months interest is paid;

    - Pursuant to the facility, Alcyone will have equal first ranking security and will also have the right to appoint a director to the Board of Black Mountain subject to any required regulatory approvals; and

    - The issue of 4,675,260 fully paid ordinary shares to Alcyone (or their nominee) together with the issue of 4,675,260 unlisted options ($0.15; 30 November 2016) subject to shareholder approval.

    Issue of Capital

    The company proposes to issue 4,675,260 fully paid ordinary shares pursuant to the facility under its placement capacity and 4,675,260 unlisted options ($0.15; 30 November 2016).

    In addition the company also intends to issue 15,000,000 listed options ($0.20; 7 May 2015) following shareholder approval granted at the recent AGM; 7,060,952 fully paid ordinary shares and 3,000,000 unlisted options ($0.12; 3 years) pursuant to existing debt facilities and as advisor fees, and 120,000 fully paid ordinary shares to local in country management under its placement capacity.


    Black Mountain is currently looking at exploiting the near term production potential of the New Departure Silver Mine in Montana.

    This includes advancing access to three historic ore blocks which will comprise a key part of production, significantly progressing the decline currently being developed towards the Main Zone and demonstrating the potential to enhance flotation concentrate recoveries to over 90% through metallurgical testwork.

    Highlighting the potential of the project, historic bonanza silver grades at the New Departure mine are confirmed by grab sample fire assay analysis, generating additional substance to the project.

    Recently the company announced grab samples returned up to 5,194 g/t silver.

    Importantly - the samples were taken from the newly opened up Blue Dot Level which accesses both the Bonanza Zone and Main Zone historic ore blocks and will form a key part of production moving forward in the coming months.

    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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