Lender Orion Fund JV Limited has agreed to defer the repayment date of the non-amortising term loan to 15 January 2018 from 31 December 2017 as part of a standstill agreement.
Discussions to refinance the loan are well progressed with settlement expected to occur by 15 January 2018.
The standstill agreement has been entered into by Blackham, Orion, key mining contractor MACA Limited and offtaker Osisko Bermuda Limited.
It covers the company’s Matilda-Wiluna Gold Project in Western Australia.
The agreement and refinancing form part of a broader recapitalisation strategy that Blackham is implementing.
After refinancing the loan, Blackham intends to undertake an entitlements issue to raise circa $36 million.
The recapitalisation strategy is underpinned by the intended support for the Matilda-Wiluna operations from Orion, MACA and Pybar Mining Services.
Milan Jerkovic to become executive chairman
As part of the strategy, non-executive chairman Milan Jerkovic will become executive chairman, taking a leading role in the operations and management of Blackham.
Milan Jerkovic said: “Whilst 2017 has been a tough year for Blackham, the 2018 operational outlook for our Matilda Wiluna Gold Project is very strong.
“The recapitalisation will ensure that Blackham is fully financed with a strong balance sheet to enable it to close out its finance facility with Orion in 2018 and to execute its forward plans.
“These include significant ongoing exploration drilling targeted at both new deposits and at increasing gold reserves.”
The company will remain in voluntary suspension until the earlier of 15 January 2018 or the announcement of completion of the refinancing and recapitalisation plan.