Secures Up To $9.15m To Advance Matilda Gold Project
Perth, April 26, 2012 AEST (ABN Newswire) - Blackham Resources Limited (
ASX:BLK) is pleased to announce it has secured up to AU$9,150,000 in funds to progress the exploration program at its 100%-owned Matilda Gold Project which currently yields 757,000 ounces of JORC-compliant inferred gold resource. The funding arrangement is underpinned by an AU$8,125,000 investment ("the Agreement") from The Australian Special Opportunity Fund, a New York-based institutional investor, managed by The Lind Partners (together, "Lind").
As part of the funding package, Blackham has agreed to separately issue 4,881,000 ordinary shares ("the Placement") at AU$0.21 per share to private investors to raise an additional AU$1,025,000 (before costs). All the investors are all professional and sophisticated investors and a separate disclosure document is not required.
Under the Agreement with Lind, Blackham will receive AU$250,000 on execution in the form of a AU$175,000 Convertible Security and AU$75,000 as a prepayment for ordinary shares in Blackham. Lind will further invest AU$75,000 to AU$225,000, in monthly share subscriptions, over the next three years. The Convertible Security will not be converted for a period of 180 days from the date of the Agreement. Further key terms of the Agreement are detailed below.
Blackham's Managing Director, Bryan Dixon, stated, "The Agreement with Lind, along with the concurrent Placement to sophisticated investors, will allow Blackham to advance exploration efforts with hopes of unlocking significant value at its Matilda Gold Project. These agreements ensure that our ongoing efforts are fully funded as we advance Matilda over the coming months."
Key Aspects of the Lind funding Agreement:
1. Certainty of access to funding
The facility provides Blackham with certainty of a base level of funding over the next 36 months. The facility amount of up to AU$8,125,000 is to be made available to Blackham in regular tranches as follows:
- Blackham will issue an unsecured convertible security with a face value of AU$175,000 and a term of 36 months at a zero % interest rate. The Convertible Security will not be converted for a period of 180 days from the date of the Agreement.
- Over 36 months, a minimum of AU$75,000 of shares will be purchased by Lind from Blackham, approximately monthly, which may be increased to AU$225,000 by mutual consent, subject to compliance with the terms of the Agreement. Blackham has the right to pause the monthly tranche purchases for defined periods as specified in the Agreement.
As part of the Agreement, Lind will be granted 1,300,000 options exercisable at 125% of the average daily volume weighted average price (VWAP) per share for the 20 consecutive trading days immediately prior to the date of the execution of the Agreement. Blackham will also pay Lind a commencement fee in Blackham shares to the value of AU$125,000, at an issue price equal to the average daily VWAPs for the five trading days prior to the execution date.
2. Minimising dilution
The structure of the investment allows Blackham to issue shares at prices that are linked to prices prevailing at the time, potentially at premiums to the current share price, minimising dilution for existing shareholders. The price at which shares will be issued is 90% of the average of the 5 daily VWAPs during a specified period prior to the issuance of shares.
On one occasion only, the conversion price may be 130% of the average daily VWAPs of the shares during the 20 trading day period prior to the execution of the Agreement.
3. Maximum Flexibility
The terms of the Agreement expressly allow Blackham to carry out additional private placements of equity, rights issues and shareholder purchase plans. In addition, the Agreement does not restrict the company's ability to enter into strategic industry partnerships. Blackham has the right to terminate the Agreement at no cost if the share price is below the floor price. Blackham may also terminate the Agreement at any time during the term on payment of a minimal fee.
The Agreement contains provisions requiring the approval of shareholders as required under Listing Rule 7.1. Shareholder approval is not required for the initial funding to proceed.
About Wiluna Mining Corporation Ltd
Wiluna Mining Corporation (ASX:WMC) (OTCMKTS:WMXCF) is a Perth based, ASX listed gold mining company that controls over 1,600 square kilometres of the Yilgarn Craton in the Northern Goldfields of WA. The Yilgarn Craton has a historic and current gold endowment of over 380 million ounces, making it one of most prolific gold regions in the world. The Company owns 100% of the Wiluna Gold Operation which has a defined resource of 8.04M oz at 1.67 g/t au. In May 2019, a new highly skilled management team took control of the Company with a clear plan to leverage the Wiluna Gold Operation's multi-million-ounce potential.
| ||
|
