Regal Funds has sold shares in gold miner Blackham Resources, just as the company says it’s recovering from debt and cost problems.

The fund manager bought 5.19 per cent in February and sold down this week, reducing its interest in the company to 3.75 per cent and ceasing to be a substantial shareholder.

It sold for around 9c a share.

Blackham’s peak share price this year was 9.6c.

Blackham secured $36 million in funding from investors in January. The offer was for shares at 4c that each came with a free 8c option.

On Tuesday morning the company was trading down 3.5 per cent at 8.2c.

By the end of February, Blackham said it had beaten all-in sustaining costs (AISC) down to $912/oz at the Wiluna gold mine as the company benefits from mining stockpiles built up in late 2017.

This is a dramatic fall from the $2200/oz AISC in the first three quarters of 2017.

It’s getting a realised gold price of $1,670/oz.

At the end of February, Blackham had cash and bullion of $31.4 million and secured debt of $43.8 million.

Blackham is now forging ahead with its underground Golden Age mine, the lifespan of which it is extending for another six months until the end of this year.

It is also considering potash mining, following an MoU with Salt Lake Potash to investigate potash opportunities at a nearby operation called Lake Way.