Troubled Blackham sets its path with ‘transformational’ $26m raising
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Blackham shareholders have backed the company’s transformation plans, raising $26 million for the troubled miner to get back to business.
It’s been a challenging 12 months for the gold minnow (ASX:BLK), after it missed ambitious production targets from late 2016 and sat in a trading halt for two and a half months.
But in a vote of confidence, up to 83 per cent of shareholders took up the entitlement offer, with shares to be issued at 4c.
The news buoyed the company on Tuesday, closing 3 per cent up at 6.1c.
Chairman Milan Jerkovic welcomed the return to operations.
“The funds raised from the entitlement offer puts Blackham in a strong position to execute on its free milling mine plan, as well as to advance exploration focused on growing our free milling mine life,” he said.
“The company is at an exciting stage, with 2018 likely to be a transformational year of strong operational and financial performance.”
January was reported as a record month of gold production for Blackham, with 6498 oz produced, an increase of 19 per cent from the month prior.
Blackham told investors it was finally cash flow positive, after missing its goal in December.
And it hopes that will just be the beginning. The company is forecasting the mining of twice as much high-grade ore as it will process in February.
For the half year to June the company is hoping for 40,000 oz to 45,000 oz.