Cash-strapped gold miner Blackham suspends shares after debt deal news delayed
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Cash strapped gold explorer Blackham Resources has gone into voluntary suspension, postponing an announcement to the market about its debt refinancing.
Last week Blackham (ASX:BLK) told investors it had “received strong interest in refinancing of its current debt position”, which totalled $36.7 million with $14.8 million due by the end of this year.
Blackham was seeking to push back that payment to 2020.
Blackham had $7.2 million in cash at the end of September. Stockhead calculations show it’s been losing between $400/ounce and $700/ounce in each quarter this year, based on selling gold at $1600/ounce.
A funding deal with New York fund Lind Partners provides up to $3 million a month in exchange for equity.
“Technical due diligence has now been completed and the legal documentation is currently well advanced,” Blackham said, before going into a trading halt pending an announcement about its funding arrangements on Monday.
Blackham investor relations manager Jim Malone has been contacted for comment.
Blackham rose to prominence last year promising a (now) 6.5 million ounce gold mine at the Wiluna gold prospect — a mine that has challenged successive operators.
It raised $80 million at prices as high as $1 a share, but saw its stock value sink at the end of October after its quarterly report showed a cash cost of $1390/ounce gold.
Stockhead calculations put the average cost, once all expenses are taken into account, at $2200/ounce for the last three quarters.
Blackham sold its gold at an average price of $1617 an ounce in the last three quarters.
The gold miner last traded at 14c, down 33 per cent from its pre-quarterly price of 21c, giving it a market value of $49 million.