Blackham Resources Ltd (ASX:BLK) is moving towards a key financial metric with the company expecting to be cash flow positive in the December 2017 quarter due to access to higher grade ore to be mined from the open pits at the Matilda/Wiluna Gold Operation.
The gold operations are located in Australia’s largest gold belt which stretches from Norseman through Kalgoorlie to Wiluna.
Blackham boasts resources of 65 million tonnes at 3.1g/t gold for 6.5 million gold ounces, which are all within 20 kilometres of the central processing facility, providing strong economies of scale.
The company has consolidated almost the entire Wiluna Goldfield within a +1,100 square kilometre tenement package which has historically produced in excess of 4.3 million gold ounces.
Latest funding details
Blackham has received strong interest in refinancing of its current debt position.
Blackham is now in a position to confirm it has a credit approved term sheet to fully re-finance the $36.7 million current secured debt position.
The term sheet has the first repayment in June 2020 which means the company’s working capital position would be improved by the $14.8 million currently repayable by the 31st December 2017 under the existing financing facility.
Technical due diligence has now been completed and the legal documentation is currently well advanced.
The term sheet remains subject to legal due diligence which is also well advanced.