Blackham Resources (ASX: BLK) has secured further funding through a placement to professional and sophisticated investors for its wholly owned 1.4 million ounce Matilda Gold Project, which is located in a major Western Australia goldfield.
The company has agreed to issue 2.5 million shares at A$0.16 each mainly to existing shareholders.
The funding is in addition to the over $6 million in undrawn funds Blackham has under its funding agreement with The Lind Partners, manager of the Australian Special Opportunity Fund, a New York-based institutional investor.
Bryan Dixon, managing director, commented: "Blackham has received significant interest in its Matilda Gold Project.
"The placement and Lind funding agreement will allow Blackham to advance exploration efforts with the aim of unlocking significant value at its Matilda Gold Project.
"These arrangements ensure that our ongoing efforts are funded in the medium term."
Matilda's rapid advance
The Matilda Gold Project has progressed rapidly over the past year since acquisition.
During the year Blackham has increased the gold resource by 352% from 310,000 ounces to 1.4 million ounces, with still more yet to come.
The company has confirmed the metallurgy as free milling over 83% of the resource.
Blackham has intercepted broad mineralisation down plunge at M1 as well as high grade mineralisation down plunge at M4.
An initial scoping study at the Matilda Mine has confirmed robust economics indicating a net present value of $0.85/share and an internal rate of return of 300%.
Blackham's tenure package covers 50 kilometres of strike along the Wiluna Mine sequence and Coles Shear which has produced over 4 million ounces of gold.
The company has the largest landholding, over 500 square kilometres, in the Wiluna goldfield and one of Western Australia's major Archaean greenstone belts.
Blackham is targeting the definition of a multi-million ounce gold resource and is working to convert the resources to reserves in the near term.
The continued investment in Blackham, through not only the placement but also the earlier investment by New York's The Lind Partners, demonstrates the strength of the Matilda Project.
In just 12 months Blackham has rapidly grown the project's resource base from 310,000 ounces to 1.4 million ounces, which is a testament to the company's aggressive exploration as well proves how well-endowed the area still is.
Significantly, the acquisition and exploration of Matilda has been done at an extremely low $4 per gold ounce cost.
Blackham has a market cap. of $10.4 million, against a share price of $0.17, which appears undervalued when you consider that the Matilda Mine has an estimated net present value of $0.85 per share and an internal rate of return of 300%.
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