An entitlement offer prospectus together with an entitlement and acceptance form have been sent by the gold producer.
The renounceable pro-rata issue is for 897 million new shares on the basis of five new shares for every two existing shares held at 17:00 (WST) on 29 January 2018.
An issue price of $0.04 per new share applies to the offer, together with one free attaching listed $0.08 option expiring on 31 January 2019 for every two new shares issued.
Funds raised will underpin growth of its Matilda-Wiluna Gold Operation in Western Australia, at which high-grade ore is being accessed.
Blackham has received strong demand from its domestic and international institutional and professional investor network to participate in sub-underwriting the issue.
Closing date for acceptances is Tuesday 6 February 2018 and trading of the new shares is expected to begin on Tuesday 20 February.
The renounceable rights issue is the final step in Blackham’s recapitalisation strategy.
It will maintain a sound cash position once the issue is complete and all relevant payments have been made, with cash expected to remain above $15 million during 2018.
During 2018 the company intends to achieve strong cash flow generation from operations and end the year in a net cash position.