Blackham Resources Ltd (ASX:BLK) received strong institutional support in a A$20.3 million oversubscribed raising.
The placement consisted of circa 45 million shares at $0.45. The funds enhance Blackham's balance sheet, and also provide a cash war chest for growth opportunities.
Bryan Dixon, managing director, commented: “Blackham is pleased with the strong support received for the placement.
"The funding allows the plant refurbishment to be fast tracked at the Matilda Gold Project and delivers additional financial strength and flexibility to Blackham."
Dixon added: "To date Blackham has focussed its efforts on re-working known resources from or adjacent to existing open pit and underground workings within the Matilda and Wiluna goldfields.
"Blackham has only just begun to unlock the geological potential of the Matilda, Quartz reefs and Lake Way extensions and regional prospects.
"We will continue to strengthen and lengthen our reserves as well as ramp up our search for game changing discoveries in a gold project with a 9Moz gold endowment.”
Today's oversubscribed funding in still difficult capital markets, highlights the confidence and support institutions have for Blackham's future gold production strategy.
Blackham has also been attracting broker attention. Earlier in the month, stockbroker BW Equities increased its price target to $0.75 a share. Canaccord Genuity has a target of $0.80 a share.
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