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Blackham Resources' Acquisition Of Wiluna Is Finalised, Funds Raised

Blackham Resources (ASX: BLK) shares are expected to lift today after the Wiluna plant & infrastructure acquisition became unconditional.

All conditions precedent have now been satisfied, with completion of the deal expected to take place within a week, with Blackham then formally taking control of the Wiluna assets.

The funds raised will fast track drilling aimed at converting resources into reserves and target high priority exploration areas.

Blackham's shares are currently trading 26% higher than the last trade before the acquisition was announced.

The acquisition complements Blackham's wholly-owned Matilda project - and positions the company as a near-term gold producer with a very large prospective exploration package.

The cost is $2 million upfront and $2.6 million in deferred production payments, which equates to < $1/oz of gold resource.

Investors have already shown support for the deal, with a further $1.86 million raised at $0.21 via a placement to sophisticated and professional investors.

The placement is in addition to the $6 million in undrawn funds from the Great Central Gold Pty Ltd Convertible Note Facility.

Bryan Dixon, managing director of Blackham Resources, commented: "The additional funding allows Blackham to fast track drilling programmes aimed at conversion of resources into reserves and target high priority exploration areas.

"It will also allow for further mining and processing studies to optimise the integration of the Matilda deposits with the Wiluna gold plant."

4.3 million gold ounce resource base

The consolidated Matilda & Wiluna Gold Project synergies include a JORC Resource of 40 million tonnes at 3.3g/t gold for 4.3 million ounces, with a land holding of 780 square kilometres and 55 kilometres of mine strike.

Blackham will continue to focus on free-milling, open-pit and shallow underground targets from Matilda.

Highlighting the prospectivity of the area, the Wiluna Mine has historically produced 4 million ounces over 100 years within an area of only 4 square kilometres.

Processing plant / infrastructure

The processing plant has a capacity of 1.1 - 1.5 Mtpa and is able to treat oxide ores for production of 80,000-100,000 ounces of gold annually.

The Wiluna plant operated up until June 2013. Blackham's ability to use the plant in its current location considerably reduces the cost of developing the free milling open pit Matilda deposits.

Additional infrastructure includes permitted borefields, a 350 person accommodation village, established sealed airstrip and roads, approvals and licenses.

New drilling

Last month Blackham recommenced drilling at its Matilda Gold Project, including its first drilling at the Galaxy and Mentelle prospects.

The program will also improve resource confidence by converting inferred gold ounces to the indicated category, thus substantiating a long-term mining operation.


The impact of the acquisition of the Wiluna Gold Project and infrastructure is that Blackham will save millions of dollars in development costs for the Matilda Gold Project and will slash years off the development timetable.

Funding of the deal will be from Blackham's $13 million facility with Great Central Gold Pty Ltd.

The acquisition sets Blackham apart from its peers as it moves from the ranks of explorer to developer.

The next steps for Blackham will be to build up a 500,000 to 600,000 reserve, after which the company will then outline a timeline to production.

There is further news flow ahead as Blackham can now fast track drilling aimed at converting resources into reserves and target high priority exploration areas.

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